Description
FIN571 Week6 Capital Structure
FIN571 Week6: Prepare a financial plan for the company you select for your business plan. This financial plan will be included in your final business plan in your capstone course.
Describe the business, including the type of business.
Create the business case.
Determine why funding is needed for the company.
Determine the sources of funding. Considerself-funding, borrowing, equity, venture capital, etc.
Evaluate the requirements of each funding source you determined appropriate.
Analyze the associated risks of each funding source.
Decide which sources are the best fit for your company based on the requirements of each. Justify your decision.
Estimate the cost of capital for both short-term and long-term funding sources. Research current estimated APRs for your selected sources of funding. Consider creating a table or chart to display this information.
Create a profit-and-loss statement for a 3-year period. Project revenue, stating realistic assumptions, such as growth per year, in your projections.
Estimate direct costs, including capital, marketing, labor, and supply costs.
Cite references to support your assignment.
Format your citations according to APA guidelines.