SIGNATURE ASSIGNMENT: SHORT-TERM FUNDING & CAPITAL MARKET EFFICIENCY
DUE DATE: MONDAY (8/26)
Prepare a 12- to 15-slide PowerPoint® presentation with speaker notes requesting initial funding of $500,000 to start and run a start-up company. The proposed start-up company could be an existing business model (coffee shop, pet store, etc.), or could be something entirely new and exciting.
Create the presentation in the following format, with at least one slide to cover each of the following areas:
– Title Page
– Table of Contents
– Executive Summary
– Information about the Industry
– Marketing Plan
– Competitor Analysis
– 3 Year Income Statement (Profit & Loss) Projections
– Your assumptions for why and how you will achieve your sales growth and what significant expenses and investments you expect to incur to achieve your revenue goals
– 3 Year Proposed Funding Schedule (sources and uses of the funds received)
– Break-Even Analysis
– Academic and Business References
Review the following scenarios and assumption, and explain how it impacts your decision to expand:
– After Year 3, the investors are interested in your company expanding internationally to possibly outsource labor or to reduce manufacturing costs. What countries would you expand to first, and why? What factors would you need to consider in making this decision?
– What is the corporate tax rate in the countries you are considering expanding your business to, and how will that affect your decision to expand globally? (Use OECD Database or another resource to determine the corporate tax rate).
– The investors want to see a decision tree detailing the decisions you would make if you received $300K now and $200K at the end of three years instead of $500K up front.
– The investors would like your team to provide advantages and disadvantages of using debt financing versus selling company stock to raise capital for growth.
– Briefly explain the venture capital process. Does it make sense for your company to raise funds through venture capital?
Format your PowerPoint presentation according to APA guidelines.
Additional requirements (not part of the PowerPoint presentation):
* Write a Capital Market Efficiency paper:
Explain in 525 words what it means to have efficient capital market, including:
– Describe the behavioral challenges in achieving efficiency.
– Discuss the three forms of market efficiency.
– What are the implications to corporate finance?
– Would you consider the real estate market an efficient capital market? Please explain why or why not.