1-perform sensitivity analysis on the cash shortfall using at least 3 different potential revenue growth rate around the current rate.what growth rate is needed to maintain the same cash balance as 2005?

2- describe the advantages and disadvantages of raising external equity via angel financing venture capital and private equity??

tal Management 03102019.pdf Adobe Acrobat Reader DC Help Case Study workin x CSU FIN601 Financial Policies section 501 spring 2019, for registered students only along to a seasonal carol on the van radio as he made his way over the dark and icy roads of Amherst County, Virginia. He and his crew had just finished securing their nursery against some unexpected chilly weather. It was Christmas Eve 2005, and Bob, the father of four boys ranging in age from 5 to 10, was anxious to be home. Despite the late hour, he fully anticipated the hoopla that would greet him on his return and knew that it would be some time before even the youngest would be asleep. He re gretted that the boys holiday gifts would not be substantial; money was again tight this year. Nonetheless, Bob was delighted with what his company had accomplished. Businens was booming. Revenue for 2005 was 1s ahead of 2004, and operating profits were up even more Bob had been brought up to value a strong work ethic. His father had worked his way up through the ranks to become foreman of a lumber mill in Southwest Vignnia. Ata young age, Bob began workinfor his father at the mill After earning a degree in agneultural economeiat Virginia Tech, he maried Maggie Homiman in 1993. Upon his return to the miil, Bob was made a supervisor. He excelled at his job and was highly respected by everyone at the mill. In 2000, facing the financial needs of an expanding family, he and Maggie began exploring employment alternatives. In late 2002, Maggies father offered to sell the couple his wholesale nuzery business, Homiman Horticulture, near Lynchburg. Vuginia. The business and the opportunity to be near Magpie's family appealed to both Maggie and Bob Pooling their savine:, the proceeds from Mageie's father, the Browns purchased the business for $999.000. It was agreed that Bob from the sale of their house, a minority-business-development grant, and a sizable personal loan would run the nursery's operations and Maggie would oversee its finance Bob thoroughly enjoyed running his own business and was proud of its growth over the previous three years. The nursery's operations filled 52 preenhouses and 40 acre of productive fields and employed 12 full-time and 15 ceazonal employees. Sales were primarily to retail nurseries throughout the mid-Atlantie region. The company specialized in such woody shrubs as azaleas, lias, hydrangeas, and rhododendrons, but also grew and sold a wide variety of annuals, perennials, and trees. I11Ov pecies erown ver the previous two years, Bob had increased the number of plant ar the nursery by more than 40%. ob was a "people pe alike. With Maggiel con His warnm perzonality had endeared him to customers and employees be had kept a tight rein on costs The effect on the businesa's profits was obvious, as ifa proft margin n had increased from 3.1% in 2003 to an expected 5.8% in 2005. incre Bob that the nursery's overall prospects were robust With Bob running the business full time, Maggie primanily focused on attending to the needs of her active family. Maggie wnooncerned about the recent decline in the firm's cash balance to below so Such a cash level was well under her operatin target of 8% of annual revenue But Ma shown With the help of two clerks, she oversaw the company's books. Bob knew that ggie had to maintain financial responsibility by avoiding bank borrowing and by paying suppliers early enough to obtain any trade discounts. [21 Her aversion to debt financing stemmed from her concern about inventory rsk. She believed that interest mpossible to meet if adverse weather wiped out their inventory A1 s, if each of us hits this goal we will open our 1 pays ment or post date. 3. change due date between 1-17 al Management 03102019.pdf-Adobe Acrobat Reader DC Help Case Study Workin. CSU FING01 Financial Policies section 501 Spring 2019, for registered students only Maggie was happy with the steady margin improvement the gains were due to Bob's the business had experienced. Some of response to a growing demand for more mature plants. Nusenes willing to pay premium prices for plants that delivered "instant landscape," and Bob increasingly shifing the product mix to that line. Maggie had recently prepared what she expected to be the end-of-year benchmark the company's performance, Maggie horticultural producers (Exhibit 2, in the Excel workbook). financial zummary (Exhibit 1, in the Excel workbook). [3l To used available data for the few publicly traded most any dimension of profitability and growth, Bob and Maggie agreed that the business appeared to be strong. They also knew that expectations could change quckly Increases in interest rate s, for example, could substantially slow market demand. The companys margins relied heavily on the hourly wage rate of S8.51, curently required for H2A-cetiied nonimmigrant foreign agncultural workers. There was some debate within the US, Congress about the merits of raising this rate Bob was optimistic about the coming year. Given the ongoing strength of the local economy, he expected to have plenty of demand to continue to grow the business Because much of the inventory took two to five years to mature sufficiently to cell, his top-line expansion efforts had been in the works for some time Bob was sure that 2006 would be a banner year; the firm's expected growth rate is shown on the first page of yotur teamm's Excel workbook. In addition, he looked forward to ensuring long-tera-growth opportunities with the expected closing next month on a neighboring 12-acre parcel of farmland. 141 But for now, it was Christmas Eve, and Bob was looking forward to taking off work for the entire week. He would enjoy spending time with Maggie and the boys. They had much to celebrate for 2005 and much to look forward to in 2006. I11 Over the past year, Homiman Horticulture had experienced a noticeable increase in business from small nuseries Becauce the cost of carrying inventory was partieularly burdensome for those eustomers, slight impcovements in the credit teruas had been accompanied by substantial rz.MestofHonumai, supplier, provided 30-day payment terms, with a 2% dicount for payments received within 10 days. sl As compensation for the B S 50,000 Gtemized as an SG&A expense) for each of the past three years. This amount was effectively the family's entire income 141 With the acquisition of the additional property, Maggie expected 2006 capital expenditures to be $75,000. Although she was not planning to finance the purchase, prevuling mortgage rates were running at for 2006 was $46,000. less, if each of us hits this goal we will open our 1 pays Payment or post date. 3. change due date between 1-:17 tal Management 03102019.pdf Adobe Acrobat Reader DC Help Case Study workin x CSU FIN601 Financial Policies section 501 spring 2019, for registered students only along to a seasonal carol on the van radio as he made his way over the dark and icy roads of Amherst County, Virginia. He and his crew had just finished securing their nursery against some unexpected chilly weather. It was Christmas Eve 2005, and Bob, the father of four boys ranging in age from 5 to 10, was anxious to be home. Despite the late hour, he fully anticipated the hoopla that would greet him on his return and knew that it would be some time before even the youngest would be asleep. He re gretted that the boys holiday gifts would not be substantial; money was again tight this year. Nonetheless, Bob was delighted with what his company had accomplished. Businens was booming. Revenue for 2005 was 1s ahead of 2004, and operating profits were up even more Bob had been brought up to value a strong work ethic. His father had worked his way up through the ranks to become foreman of a lumber mill in Southwest Vignnia. Ata young age, Bob began workinfor his father at the mill After earning a degree in agneultural economeiat Virginia Tech, he maried Maggie Homiman in 1993. Upon his return to the miil, Bob was made a supervisor. He excelled at his job and was highly respected by everyone at the mill. In 2000, facing the financial needs of an expanding family, he and Maggie began exploring employment alternatives. In late 2002, Maggies father offered to sell the couple his wholesale nuzery business, Homiman Horticulture, near Lynchburg. Vuginia. The business and the opportunity to be near Magpie's family appealed to both Maggie and Bob Pooling their savine:, the proceeds from Mageie's father, the Browns purchased the business for $999.000. It was agreed that Bob from the sale of their house, a minority-business-development grant, and a sizable personal loan would run the nursery's operations and Maggie would oversee its finance Bob thoroughly enjoyed running his own business and was proud of its growth over the previous three years. The nursery's operations filled 52 preenhouses and 40 acre of productive fields and employed 12 full-time and 15 ceazonal employees. Sales were primarily to retail nurseries throughout the mid-Atlantie region. The company specialized in such woody shrubs as azaleas, lias, hydrangeas, and rhododendrons, but also grew and sold a wide variety of annuals, perennials, and trees. I11Ov pecies erown ver the previous two years, Bob had increased the number of plant ar the nursery by more than 40%. ob was a "people pe alike. With Maggiel con His warnm perzonality had endeared him to customers and employees be had kept a tight rein on costs The effect on the businesa's profits was obvious, as ifa proft margin n had increased from 3.1% in 2003 to an expected 5.8% in 2005. incre Bob that the nursery's overall prospects were robust With Bob running the business full time, Maggie primanily focused on attending to the needs of her active family. Maggie wnooncerned about the recent decline in the firm's cash balance to below so Such a cash level was well under her operatin target of 8% of annual revenue But Ma shown With the help of two clerks, she oversaw the company's books. Bob knew that ggie had to maintain financial responsibility by avoiding bank borrowing and by paying suppliers early enough to obtain any trade discounts. [21 Her aversion to debt financing stemmed from her concern about inventory rsk. She believed that interest mpossible to meet if adverse weather wiped out their inventory A1 s, if each of us hits this goal we will open our 1 pays ment or post date. 3. change due date between 1-17 al Management 03102019.pdf-Adobe Acrobat Reader DC Help Case Study Workin. CSU FING01 Financial Policies section 501 Spring 2019, for registered students only Maggie was happy with the steady margin improvement the gains were due to Bob's the business had experienced. Some of response to a growing demand for more mature plants. Nusenes willing to pay premium prices for plants that delivered "instant landscape," and Bob increasingly shifing the product mix to that line. Maggie had recently prepared what she expected to be the end-of-year benchmark the company's performance, Maggie horticultural producers (Exhibit 2, in the Excel workbook). financial zummary (Exhibit 1, in the Excel workbook). [3l To used available data for the few publicly traded most any dimension of profitability and growth, Bob and Maggie agreed that the business appeared to be strong. They also knew that expectations could change quckly Increases in interest rate s, for example, could substantially slow market demand. The companys margins relied heavily on the hourly wage rate of S8.51, curently required for H2A-cetiied nonimmigrant foreign agncultural workers. There was some debate within the US, Congress about the merits of raising this rate Bob was optimistic about the coming year. Given the ongoing strength of the local economy, he expected to have plenty of demand to continue to grow the business Because much of the inventory took two to five years to mature sufficiently to cell, his top-line expansion efforts had been in the works for some time Bob was sure that 2006 would be a banner year; the firm's expected growth rate is shown on the first page of yotur teamm's Excel workbook. In addition, he looked forward to ensuring long-tera-growth opportunities with the expected closing next month on a neighboring 12-acre parcel of farmland. 141 But for now, it was Christmas Eve, and Bob was looking forward to taking off work for the entire week. He would enjoy spending time with Maggie and the boys. They had much to celebrate for 2005 and much to look forward to in 2006. I11 Over the past year, Homiman Horticulture had experienced a noticeable increase in business from small nuseries Becauce the cost of carrying inventory was partieularly burdensome for those eustomers, slight impcovements in the credit teruas had been accompanied by substantial rz.MestofHonumai, supplier, provided 30-day payment terms, with a 2% dicount for payments received within 10 days. sl As compensation for the B S 50,000 Gtemized as an SG&A expense) for each of the past three years. This amount was effectively the family's entire income 141 With the acquisition of the additional property, Maggie expected 2006 capital expenditures to be $75,000. Although she was not planning to finance the purchase, prevuling mortgage rates were running at for 2006 was $46,000. less, if each of us hits this goal we will open our 1 pays Payment or post date. 3. change due date between 1-:17