MTM World INC. 2019: Total Revenue = $333,329 Total Expenses = $275,791 Net income of $57,538 2020:
Question:
MTM World INC.
2019:
Total Revenue = $333,329
Total Expenses = $275,791
Net income of $57,538
2020:
Total Revenue = $4,257
Total Expenses = $92,394
Net income of $(88,137)
1- Up to $250,000 Loan(only by analyzing and using the company's financial statements, no need to financial statements' Audit), interest rate 5.55%, amortization 5 years.
2- Up to $350,000 for Equipment purchasing to implement the plan of manufacturing products(no need to audit the company's financial statements), interest rate 6.45%, amortization 6 years.
3- Up to $1,000,000 Loan:Requires two last years' financial statements' audit that costs between $7,000 to $10,000 for business owner/s), interest rate 8.45%, amortization 5 years.
1.Which development options are available for MTM World that financial institutions can finance, and which one would be the best?
2. Which financial product would be the best option to get this business financed?
3. If the business needs more financing, is it wiser to choose debt financing or equity financing? And why?
Expert Answer:
1 Up to 250000 Loan Interest rate 555 Amortization period 5 years Monthly payment 250000 0055512 1 0... View the full answer
