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    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    A company needs about $20-25 million dollars to expand. The following is included for information. It is privately owned and sells proprietary products in the medical field. There has never been the use or need for investment capital from outside sources until now. The prospects for sales are excellent.

    Please help with determining the strategy to use to obtain the necessary financing to support the anticipated future growth and the concept to use to chose an investor for the funds needed. Any help you can supply will be greatly appreciated.

    © BrainMass Inc. brainmass.com December 24, 2021, 8:42 pm ad1c9bdddf
    https://brainmass.com/business/finance/help-financial-decisions-304102

    SOLUTION This solution is FREE courtesy of BrainMass!

    First, you need to identify the optimal capital structure of the firm. The optimal capital structure is the particular mix of debt and equity financing which results to the highest value for the firm. Second, this target capital structure would then dictates what investor - whether creditors or stockholders - the company has to raise funds from. In other words, the financing decision will always be based in attaining the target capital structure.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    © BrainMass Inc. brainmass.com December 24, 2021, 8:42 pm ad1c9bdddf>
    https://brainmass.com/business/finance/help-financial-decisions-304102

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