Santana Rey created Business Solutions on October 1, 2021. ?The company has been successful, and Santana...

50.1K

Verified Solution

Question

Accounting

Santana Rey created Business Solutions on October 1, 2021. ?The company has been successful, and Santana plans to expand her business. She believes that an additional $124,000 ?is needed and is investigating three funding sources.
a. ?Santana's sister Cicely is willing to invest $124,000 ?in the business as a common shareholder. Because Santana currently has about $186,000 ?invested in the business, Cicely's investment will mean that Santana will maintain about 60% ?ownership and Cicely will have 40% ?ownership of Business Solutions.
b. ?Santana's uncle Marcello is willing to invest $124,000 ?in the business as a preferred shareholder. Marcello would purchase 1,240 ?shares of $100 ?par value, 7% ?preferred stock.
c. ?Santana's banker is willing to lend her $124,000 ?on a 7%, 11-year note payable. She would make monthly payments of $1,350 ?for 11 ?years.
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students