This is a homework question. This is just a homework question.

Question is how to proceed with regards to debt to furnish this year's operations.

Current interest rates for a company with a credit rating C- 12.7%.

The potential for our company to result in an automatic overdraft loan is 12.7% interest.

So my question is this, should I make an early repayment of loan and borrow again, and issue dividends to increase EPS and ROE?

See attached screenshots of what I have done so far.

BLhNCE SHEET LASH FLOW STATEMENT ..-..- p"..- - I Beginning {ssh BIlIllDEMIdWWr-WM $1353- cf' Fleeei frunFeutweerSelee-eeemn] M3501 Tl Bank eens 1-Year Lean [1| Cash (in Hand Aeeeunts Receivable meme FmMQerln'Ii-emerles Tertel Current Assets Net lnvesnnenth Feellllleeand Equlpment Censtruction Wed: In Pr ress thine! Preduelien I'Iprevernent ens 0n Tetal Fixed Meets {nee "cm 1'] Twill-1551.!" 5-Year Lean I] 1ll'l'eurLeen 2511,0113 Steel: hammers-gems} Sale emedue'en Wrestlmmen sh Balm Lmhwerverdrllt nwmnem Cash Rehrnd WWW-mi Tutsi Cash Available fmm All Sources Mam mme nm:e 212:1T2 Dlstrihutlen and Warehouse Expenses 91.1339- Hen-meg andAclninist'ave Expenses 193,095 - Amounts I hle [see ma} 1-Year Eleni: n Pagehleeu ran-1|: Current Per-lien el ngJer-rn Ban Leene nch": a} Dverdrult Lean P'Ijrehle mums} Telel Current Liehiilies Long Term Bunk Learns Outstanding (seem?! E Expensren mm D Tet-l Liehiities " Elia "mumm he a DJ: E Z ":5": -_'-_- : Eln! Elll Carr-m See-ch ' ' ltLom1-'I'elrLuen 150,000 " Wm "-159 5-Year Lens 911 nun Addl'l'lll CI ll'li {in Milli] 55515? (we I: "Ly-Hr Lil-N15 E-n m'" E" "9" "5""! 1] "4-"? I rest Bunk Loam 549500 Tet-I Shareholder Equity 1'16 meldreft Lean El . _ StedrReF-urelnse mum washes" REESE I ' 3"de We"? Slurehelde 31553 I mm D" "t3 Ill: 1. er 11 mm d m .111 I err-enigma n "I m- m Chmar I1 "hung" r5 wear m masseuse-1m mam-haw EnshF'ne ' no Hammer "in Emmi-em I [:95qu HanserMSMHMWumere-amw mmrnmrm er TtlEBha nmrrmwummemm m m Hemt- MWJMf-mefnre {Wm-hamlm