Global Remediation
Case: Global Remediation Funding Future Growth
1. As MacDonald, one of the major issues to the future success of the company would be on finding the best alternative to raising funds without impacting their shares of the company. They would also require that the revenue and profits increased as a result of expansion. If the expansion did not generate their forecasted outcome, it would not be as profitable.
2. - the interest and principal repayment amounts each year - impact on the percent ownership of the company - the duration of loans - the ability to pay back if borrowed
3. Instead of an immediate expansion, the shareholders and MacDonald can slowly put aside funds from their profits and put it towards the expansion. Even though their future growth is limited to roughly 10% per year, that increase is still significant. They could also consider selling off their technology.
4. I think maintaining control of the company is important towards MacDonald and his owners because they started up the company. They want to control the decisions and projects towards the future.
5. The forecasted earnings after tax for 2011 are around 8x higher than the earnings in 2010. The risk involved would be if they borrowed funds and are unable to meet the conditions. The company forecasts that it will have enough earnings to cover for its new financing. Since all the numbers are forecasted, there is a chance that revenues and profits may not be as high.
6. 2. EBIT= 753 - 236.25 = 516.75 x 0.75 after tax=388 – 25% dividends=291/1Mshares=0.29
3. EBIT= 753 – 0 = 753 x 0.75=565 – 25% dividends=424/1.75Mshares=0.2423
4. EBIT= 753 – 0 = 753 x 0.75=565 – 25% dividends=424/2Mshares=0.212
5. EBIT= 753 – 0 = 753 x 0.75=565 – 25% dividends=424/1Mshares=0.424
6. EBIT= 753 – 258.125=494.875 x 0.75 =371 – 25% dividends=278/1.1Mshares=0.2527
1. As MacDonald, one of the major issues to the future success of the company would be on finding the best alternative to raising funds without impacting their shares of the company. They would also require that the revenue and profits increased as a result of expansion. If the expansion did not generate their forecasted outcome, it would not be as profitable.
2. - the interest and principal repayment amounts each year - impact on the percent ownership of the company - the duration of loans - the ability to pay back if borrowed
3. Instead of an immediate expansion, the shareholders and MacDonald can slowly put aside funds from their profits and put it towards the expansion. Even though their future growth is limited to roughly 10% per year, that increase is still significant. They could also consider selling off their technology.
4. I think maintaining control of the company is important towards MacDonald and his owners because they started up the company. They want to control the decisions and projects towards the future.
5. The forecasted earnings after tax for 2011 are around 8x higher than the earnings in 2010. The risk involved would be if they borrowed funds and are unable to meet the conditions. The company forecasts that it will have enough earnings to cover for its new financing. Since all the numbers are forecasted, there is a chance that revenues and profits may not be as high.
6. 2. EBIT= 753 - 236.25 = 516.75 x 0.75 after tax=388 – 25% dividends=291/1Mshares=0.29
3. EBIT= 753 – 0 = 753 x 0.75=565 – 25% dividends=424/1.75Mshares=0.2423
4. EBIT= 753 – 0 = 753 x 0.75=565 – 25% dividends=424/2Mshares=0.212
5. EBIT= 753 – 0 = 753 x 0.75=565 – 25% dividends=424/1Mshares=0.424
6. EBIT= 753 – 258.125=494.875 x 0.75 =371 – 25% dividends=278/1.1Mshares=0.2527