Potential Solutions Propose at least three solution plans for Clarkson and assess the feasibility, and the...

Transcribed Image Text:

Potential Solutions Propose at least three solution plans for Clarkson and assess the feasibility, and the pros and cons of each plan. The following questions may help you start. Is the current sales growth sustainable? What kind of growth rate would you recommend? How attractive is the 2% discount for early payment the suppliers are offering? Can Clarkson offer similar deals to his customers? - Is $750,000 sufficient? How much Clarkson really need? From the bank's perspective, what covenants you would like to impose? (Refer to your introductory finance textbook on bond covenants.) How would you solicit outside equity investors? Would Mr. Clarkson like an outside equity investor, given that he just bought out his partner? Potential Solutions Propose at least three solution plans for Clarkson and assess the feasibility, and the pros and cons of each plan. The following questions may help you start. Is the current sales growth sustainable? What kind of growth rate would you recommend? How attractive is the 2% discount for early payment the suppliers are offering? Can Clarkson offer similar deals to his customers? - Is $750,000 sufficient? How much Clarkson really need? From the bank's perspective, what covenants you would like to impose? (Refer to your introductory finance textbook on bond covenants.) How would you solicit outside equity investors? Would Mr. Clarkson like an outside equity investor, given that he just bought out his partner?

Answer rating: 100% (QA)

Potential Solutions 1 Sales Growth Assessment Feasibility Evaluate current sales trends market deman... View the full answer