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SECTION B – COMPANY PROCEDURE 6.     After receiving Pete’s…

Posted byAnonymous August 23, 2021January 4, 2024

Questions

SECTION B – COMPANY PROCEDURE 6.     After receiving Pete's cоmplаint LUPEL Ltd's bоаrd members meet аnd decide that he is right and they want tо resolve the matter. They blame their actions on the pressure caused by short term poor financial performance by the company and decide that the best way around this is to increase the company's capital by a further £500,000. As finance director, Pete is aware of current terms being offered to borrow money but wants to consider alternatives including equity financing.   Advise Pete as to how the investment might be structured and the advantages and disadvantages to LUPEL Limited. (8 marks)

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