Source of Finance
Table of Contents
I, INTRODUCTION:
II, TASK: TASK 1:
1. Identify and describe the various sources of finance 1.1 Internal source 1.2 External sources
2. Assess the implication of the difference sources of finance related to risk, legal, financial and dilution of control and bankruptcy 2.1 Issue debt 2.2 Issue equity
3. Select appropriate sources of finance and make recommendations on the best ways of raising finance TASK 2:
Part 1: Assess and compare various costs involve with each source of finance to Vale filters Limited
Part 2: Prepare cash budget for Vale filters Ltd. And discuss the importance of financial planning 2.1 The importance of financial planning 2, Prepare cash budget
III, APPENDIX
IV, REFERENCE
I, INTRODUCTION
VALE FILTERS
Alan Simpson and his colleague Geoff want to set up a business that produces and markets filters which are used with chemical after testing successfully. The company is called VALE FILTERS. However, their own capital isn’t enough so that they want to find others financial source. They also know six other people who are interested in investing in their business. As a Financial Advisor in a Consultant Company, I’ll give them the basic information of available various sources of finance, implications of each source and based on that I’ll evaluate and give recommendation.
II, TASK
TASK 1: Part 1: Identify and describe the various sources of finance: All sources of finance can be put into 2 categories: internal and external source.
1.1 Internal sources: + Personal saving + Retained profit + Working capital + Sale of assets * Personal saving: The money of the business owners, such as their own cash or saving account, invest directly to the business. * Retained profit: Retained profit is the profit which company make but don’t spend, it is kept or saved in the bank. * Working capital: Working capital is the money is used in the short-term to pay for the day-to-day activities of
I, INTRODUCTION:
II, TASK: TASK 1:
1. Identify and describe the various sources of finance 1.1 Internal source 1.2 External sources
2. Assess the implication of the difference sources of finance related to risk, legal, financial and dilution of control and bankruptcy 2.1 Issue debt 2.2 Issue equity
3. Select appropriate sources of finance and make recommendations on the best ways of raising finance TASK 2:
Part 1: Assess and compare various costs involve with each source of finance to Vale filters Limited
Part 2: Prepare cash budget for Vale filters Ltd. And discuss the importance of financial planning 2.1 The importance of financial planning 2, Prepare cash budget
III, APPENDIX
IV, REFERENCE
I, INTRODUCTION
VALE FILTERS
Alan Simpson and his colleague Geoff want to set up a business that produces and markets filters which are used with chemical after testing successfully. The company is called VALE FILTERS. However, their own capital isn’t enough so that they want to find others financial source. They also know six other people who are interested in investing in their business. As a Financial Advisor in a Consultant Company, I’ll give them the basic information of available various sources of finance, implications of each source and based on that I’ll evaluate and give recommendation.
II, TASK
TASK 1: Part 1: Identify and describe the various sources of finance: All sources of finance can be put into 2 categories: internal and external source.
1.1 Internal sources: + Personal saving + Retained profit + Working capital + Sale of assets * Personal saving: The money of the business owners, such as their own cash or saving account, invest directly to the business. * Retained profit: Retained profit is the profit which company make but don’t spend, it is kept or saved in the bank. * Working capital: Working capital is the money is used in the short-term to pay for the day-to-day activities of