Russban Plastics Essay Example | Topics and Well Written Essays - 1000 words

Russban Plastics - Essay ExampleIt means that Jack together with the minor shareholders willinging not be able to vote for the approval of the companys dissolution he needs to be in agreement with Ben. Therefore, Andy and Ben will be able to continue their business. However, it is recommended to negotiate with Jack and other shareholders, because their strong dissatisfaction may lead to opposite word to approval of the coronation decisions and bring company to a halt.3.In order to buy out the shareholders and rest shares at par value, and to obtain a full control over the Russbands operations, a loan of ( 120,000 - 60,000 - 21,000) + ( 250,000 - 160,000) = 169, 000 will be necessary.The bank will not have a positive view of the loan, as the add up of the loan is quite substantial, and the companys expansion plans would have to be shelved for another year. It means, at least, two more accompanying years of losses and there is no proof that the market conditions afterwards will b e affirmatory and allow achieving considerable profits.Whether the loan will be granted will depend on Ben and Andys competency to provide a sound financial plan indicating that the company in the future will be able to generate enough cash to make principal and interest payments, and on the presence of allow collateral.Russban Plastics has sufficient authorized capital, more than 25% of it issued and satisfactory amount of the paid-up capital. To change the status from clannish to a PLC company it will need to seek certificate of trading and incorporation from the authorities in the lead starting the financing activities. Afterwards, it will also need to submit latest financial reports and made the intelligence operation and information that are likely to affect the price available to the market.In order to join post the company will need toAppoint an advisor and a brokerSubmit a contract of business interestSubmit an admission documentPay admission fee of 4,000Incur the adv isors fees ranging from 300,000 up to 1,000,000 and 2%-5% flotation cost.Generally speaking, while going public offers an opportunity to raise a epochal amount of additional funding, it will require substantial spending of the management time and costs.5.The incremental investment amount, taking into account sale of the existing premises for 500,000, would be equal to 500,000. According to the Gordon Growth mould cost of equity will be equal toCe = D1/p0 + g = (50 p*0.06* (1 + 0.01))/50 p + 1% = 7.1%Considering also cost of