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Business, 12.08.2020 05:01 10040813

The Exceptional Service Grading Company requires a capital infusion of $500,000. It is currently a closely held corporation with less than 25 shareholders. Although the shareholders are not all related to each other, they all know each other, and they view the business as a family business. Several alternatives are available to the company, consisting of the following:
Obtain private debt financing
Seek out a private investor(s) who would be willing to share ownership (private transfer of partial ownership)
Seek out offers for a private buy-out (private transfer of entire ownership)
Issue public debt (corporate bonds)
Issue public common stock (public equity offering)
Briefly discuss each alternative and include implications to the company’s capital structure and cost of capital, if any. Considering the size of the investment ($500,000 infusion), provide a conclusion on how it might impact the financial statement.

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