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Corporate Finance


Requesting initial funding of $500,000 to start and run a

start-up company. The proposed start-up company could is for a Home Improvement Business called "Home Essentials". 



o   3 Year Income Statement (Profit & Loss) Projections (your own figures)

o   Your assumptions for why and how you will achieve your sales growth and what significant expenses and investments you expect to incur to achieve your revenue goals

o   

o   3 Year Proposed Funding Schedule (sources and uses of the funds received)


o   1- After Year 3, the investors are interested in your company expanding internationally to possibly outsource labor or to reduce manufacturing costs. 


o   What countries would you expand to first, and why? 


o   2-What factors would you need to consider in making this decision?


o   3-What is the corporate tax rate in the countries you are considering expanding your business to, and how will that affect your decision to expand globally? (Use OECD Database or another resource to determine the corporate tax rate).


o   4-The investors want to see a decision tree detailing the decisions you would make if you received $300K now and $200K at the end of three years instead of $500K up front.


o   5-The investors would like your team to provide advantages and disadvantages of using debt financing versus selling company stock to raise capital for growth.


o   6-Briefly explain the venture capital process. Does it make sense for your company to raise funds through venture capital? 

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