Financing Plan to Raise Capital Research Paper Example | Topics and Well Written Essays - 2250 words

Financing Plan to Raise Capital - Research Paper Example The Marina Restaurant was blessed with an interest from very influential people and customers even from the beginning. It usually hosts live bands apart from food and this has helped it solidify its image as the premier casual rock and roll diner. With all the success, the company has grown globally. The vast amounts of locations reflect the effective and efficient management which has led a small investment in a single cafe into an internationally recognized business expanding in just over 18 years. Marina Restaurant revenues are mainly from cafes, selling memorabilia and hotels. To ensure customers keep coming back they ensure they provide excellent value in the form of good food and entertainment. With such growth, the management has decided to open more outlets for the restaurant. However, it needs capital to start up the investment. Start-up Funding The Marina Restaurant seeks funding of $900,000 for the new venture and it will get it from three investment groups or under equity offering which entails raising capital through the issue of stock. This approach is preferred at this stage since there are no repayment schedule or debt service repayments. The shareholders will only get their returns when the company makes profits. The shareholders also have a right to vote during annual general meetings and can elect the board of directors (Owen 2003). The ordinary shareholders are the owners of the business and can receive dividends from profits. However, it is a costly process as there are floatation costs incurred and it can lead to dilution of shares held by existing shareholders. It is also risky if there are no dividends payable at year end thus shareholders end up bearing the operational risk. The investment documents will be prepared by legal firms representing each party and will not be limited to Form D Security Exchange Commission (SEC) filing, Subscriptions agreement and the Private Placement Memorandum (PPM). The subscriptions agreement reflects the terms and conditions of the investment. In other words, it is the sales contract for buying securities. Form D SEC filing notifies the commission that the company is using Regulation D program and also gives the basic information of the company. It is vital to note that this form is not an approval document but a mere notification that the company has an offering in the place. It is a violation of the security laws under the federal government to raise capital without this document. The PPM discloses all the company’s information to investors. The information maybe whether the company is raising debt or equity, the risk the investors may face and the terms of the investment( share price, maturity dates or note amounts). Financial projections Financial projections will be on the income statement, statement of financial position, statement of cash flows as well as on the financial ratios. Projections will be on years ranging from 1 to 5, and they are based on historical inform ation already available from the company (Owen 2003). Apart from the forecast, the break-even analysis will be carried out. Break even analysis Break even analysis shows the relationship between selling prices, sales volume, variable costs, fixed costs and profits at various levels of activity. It is also referred to as cost-volume profit analysis. It used in determining the break-even point where the total revenue equals the total costs. This means that at BEP, the profits are zero. Fixed costs include rent,

Informal interview with immigrant from kenya Essay

Informal interview with immigrant from kenya - Essay Example When you came to USA, did you speak English? Response: The Americans and the people of my culture behave in quite different ways. For instance, in greetings, the people of my culture shake hands warmly and heartily; in American culture, however, although people shake hands in greetings, the shaking of the hands is not done in a warm and cheerful manner. Also, according to my culture, public expression of romantic feelings is discouraged; in fact, according to my culture, it sounds a bit odd to tell your lover publicly that you love her. For that reason therefore, dating in my culture is quite different from dating in the American culture- in my culture, rarely do the dating couple express their romantic feelings in public as is the case in American culture. Again, in socializing, the people of culture behave quite differently from the American people. This is because the people of my culture consider the community to be more important than the individual, for that reason, therefore, the people of my culture are quite united as a community, unlike the American people who are individualistic and who regard the individual to be more important than the community/society. Answer: There are two main situations in which I felt completely misunderstood when I arrived to America. In the first situation, on the first day of my arrival, I extended my hand in greetings to all the people I interacted with at the airport. To my surprise, many of the people I extended hands to in greetings looked at me suspiciously and they did not shake my hands; I really felt misunderstood by these people and ever since I wait for the people to first extend their hands in greetings before I extend my hand and shake them in greetings. In the second incident, on my second week in America, I held my friend’s hand, my compatriot Mr. Eric Odhiambo, as we were walking along the road; to our surprise, the people looked at us suspiciously. I later learnt that the people who looked at us