FIN307 Principle of finance Mini Case
Week 7 Mini Case
Complete the Chapter 18 Mini-case on page 788 in your textbook. After reading the case, you will complete questions A through D only. In addition to your textbook, please provide at least three scholarly sources to support your answers.
Business School Assignment Instructions
The requirements below must be met for your paper to be accepted and graded:
Write between 750 – 1,250 words (approximately 3 – 5 pages) using Microsoft Word in APA style.
Use font size 12 and 1” margins.
Include cover page and reference page.
At least 80% of your paper must be original content/writing.
No more than 20% of your content/information may come from references.
Use at least three references from outside the course material; one reference must be from EBSCOhost. Text book, lectures, and other materials in the course may be used, but are not counted toward the three reference requirement.
Cite all reference material (data, dates, graphs, quotes, paraphrased words, values, etc.) in the paper and list on a reference page in APA style.
References must come from sources such as scholarly journals found in EBSCOhost or on Google Scholar, government websites and publications, reputable news media (e.g. CNN , The Wall Street Journal, The New York Times) websites and publications, etc. Sources such as Wikis, Yahoo Answers, eHow, blogs, etc. are not acceptable for academic writing.
Mini Case
Randy’s, a family-owned restaurant chain operating in Alabama, has grown to the point that expansion throughout the entire Southeast is feasible. The proposed expansion would require the firm to raise about $18.3 million in new capital. Because Randy’s currently has a debt ratio of 50% and because family members already have all their personal wealth invested in the company, the family would like to sell common stock to the public to raise the $18.3 million. However, the family wants to retain voting control. You have been asked to brief family members on the issues involved by answering the following questions.
- What agencies regulate securities
- markets?
- How are start-up firms usually financed?
- Differentiate between a private placement and a public offering.
- Why would a company consider going public? What
- ar
- e some advantages and
- disadvantages?
Requirements: 750 -1250 words
Answer preview
Venturing into the world of entrepreneurship requires businesspeople to familiarize themselves with the basic principles of key areas like financing. This is evident in the case study on Randy’s family-owned restaurant chain in Alabama, whose growth opened expansion opportunities in the Southeast. The expansion, however, would require the owners to have startup capital of approximately $18.3 million. Due to the will of selling common stock, the family should know crucial information regarding the security markets, ways of financing startup firms, and the impacts of the private placement and public offerings.
820 words