Submit a written paper which is at 5-pages in length, exclusive of the reference page,  double spaced in Times New Roman font which is no greater than 12 points in size. The paper should cite at least three sources independent of the textbook.
In this paper, please discuss the following case study. In doing so, explain your approach to the problem, support your approach with references, and execute your approach. Provide an answer to the case study’s question with a recommendation.
Case Study:
The Great Service Cleaning and Maintenance Company requires a capital infusion of $200,000. It is currently a closely held corporation with less than 50 shareholders. Although the shareholders are not all related to each other, they all know each other and they view the business as a family business. Please refer to the financial statements available here. The financial statements should be familiar to you because you performed a basic financial analysis of the company in Unit 1 of this course.
A number of alternatives are available to the company. It can:
- Obtain private debt financing
- Seek out a private investor(s) who would be willing to share ownership
- Seek out offers for a private buy-out
- Issue public debt (corporate bonds)
- Issue public common stock
In this paper, discuss the impact and implications of each alternative. It would be appropriate to include the topics and areas of discussion you covered in the case study in Unit 6 so long as it is applied to this specific case. Considering the size of the investment ($200,000) how does this impact the financial statements reviewed in Unit 1?
Superior papers will explain the following elements when responding to the assignment question:
- Provide a narrative about private debt, private transfer of partial ownership, private transfer of entire ownership, public debt issuance, and public equity offering.
- Provide a discussion of the impact of each alternative which would include issues of structure and cost of capital.
- The narrative will discuss the impact of an infusion of capital of $200,000 on the financial statements.
