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    Memo recommending financial mix of debt and equity

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    Write a brief memorandum addressed to the instructor that discusses how your company (project company) is financed. Discuss the mix of debt and equity financing. Additionally, discuss what type and mix and financing would you recommend for your company. Provide your reasoning for your recommendations.

    © BrainMass Inc. brainmass.com December 24, 2021, 9:05 pm ad1c9bdddf
    https://brainmass.com/business/finance/memo-recommending-financial-mix-debt-equity-342404

    SOLUTION This solution is FREE courtesy of BrainMass!

    Create a letterhead for your memo. Don't forget your own name somewhere. The following is a rough draft of an idea, based on my father's now dissolved company.
    ___________________________________________________________________

    center letterhead.

    To: Mr. Baxter (Use your instructor's name as he/she instructs in the assignment))
    From: Ms. Smith (good place for your name)

    Our company, Corfman Distributing, Inc. is financed through an equity mortgage loan (substitute any method you want) and private investors (same). At this time our mix of debt and equity financing is at an even 50%. (Here you will want to make sure your amounts are reasonable and you may wish to include different percentages due to different financing methods).
    At this time, I recommend increasing our equity financing, with an increase of inventory in anticipation of a greater return for our private investors. Our investors look for the quick return on their investments that Corfman Distributing has provided in the past and we will work toward continuing their satisfaction. (You can get much more detailed in reasoning for your recommendations than this, but you get the idea).

    Sincerely,
    Ms. Smith

    ________________________________________________________________________________________

    Hope this helps you create your memorandum. I remember a similar assignment and it was fun. You can create your own dream company. (just be aware that you will probably never make as much money in real life as in your dream company! LOL). Your financing, equity, debt, etc, do not have to make sense as long as you provide a reasoning for the recommendation of what you want to do. And you can make your company as successful or as dire as you want as well.

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

    © BrainMass Inc. brainmass.com December 24, 2021, 9:05 pm ad1c9bdddf>
    https://brainmass.com/business/finance/memo-recommending-financial-mix-debt-equity-342404

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