Purinex

Our company will plan to finance our strategy principally through issuing stock and cash flows from operating activities generated from the company’s normal business functions. It is undesirable for our strategy to issue debt because we would like to stay away from interest payments. Our company anticipates our debt to equity leverage ratio to be around 0.5.

the sale of germicidal, sanitation, and antiseptic products for health care uses. However, the beta given in the appendix is the levered beta, which we have converted to unlevered beta and then averaged the unlevered beta of the two comparable companies. This unlevered beta has then been applied to the proposed capital structure of 30% debt and 70% equity. This is the unlevered beta of the unit under consideration. This is then converted to calculate the levered project beta as 0.936. The levered beta for Chiron is 0.85 and for pathogen is 0.90. This means that Montagne Medical Instruments Company's germicidal, sanitation, and antiseptic products unit carries more business risk compared to its competitors’ viz. Chiron and Pathogen.

James Gitanga was not sure about the unusual capital structure of the Company, avoiding the long-term debt. We believe that the long-term capital structure across the industry was pre-determined by the high capital expenditures and steady cash inflows. Thus, issuing long-term debt was more preferable. Besides, by issuing debt they would enjoy the tax shield since interest on long-term debt is tax-deductible.

The company position is strong enough so its better that company should use debt financing instead of equity financing.

Three interrogations were thus to answer. Should the company provide investors with classic bonds or give them the opportunity to convert them into equity? Should they structure the offer with a fixed or a floating coupon rate? And last but not least, where should they locate the operation?

a) Apply the coefficient-of-variation decision criterion to these alternatives to find out which is preferred by the angel investor, assuming that he/she is risk-averse.

Two main risks need to be considered with this acquisition. The first risk is the contingent liabilities arising from Elson’s compensation and accumulated earnings from PTI’s interest-earning assets. Lane should provide the bank information on the accountant’s opinion on these contingent liabilities as rationale the bank’s valuation needs to discount them from their asking price.

SecureNet INC, a software enterprise that focuses on the e-commerce security, is trying to raise a first round of funding in October 2000. The company has been unsuccessful in attracting funding from venture capitalists, and raised a small round seeds from local investors in Virginia. In the following two month, SecureNet financed a $250,000 bridge loan from an Angel investor called Trio LLC. Trio has proposed to offer a $ 1.4 million a Series A funding of convertible preferred stock. Right now, Richard Goodson, the CEO of SecureNet must decide whether to accept the offer from Trio LLC, or come back to find other VC investors.

However, currently Purinex only has $7,000,000 cash in hand and can only survive for next 11 months. If we wait for six months for the partnership deals, we would lose the opportunity to seek angel investors. In addition, if either Sepsis or Diabetes deal didn’t come through during the next six months, then Purinex will be forced into a down-round. This will drop its pre-money valuation to 8 million or even 5 million.

The capital structure of this retail drugstore is determined by 42,5% Debt and 57,50% Equity due to $8.239 of the total debt and $11,104,30 of Equity resulting in $19,313.60 of Total Liabilities and Shareholders’ Equity for 2007. Among the main debt-financing sources,

As shown in the ratios chart, working capital has increased by $13M. Maturities of short-term investments and cash flow from operations are projected to be sufficient to sustain the company’s overall financing needs, including capital expenditures. The following corporate strategic plan identifies a project that needs financial backing.

Apex Investment Partners was founded in 1987 by James A. Johnson and the First Analysis Corporation. In its eight-year life, the VC had raised three funds. The two first which are already closed had, together, a committed capital of around $70M. There were mainly concentrated in four areas: • • • • Telecommunication, information technology and software. Environmental and industrial productivity-related technologies. Consumer products and specialty retail. Health-care and related technologies.

Due to this, our finance strategy was to fund these activities in R&D, production and marketing by taking loans (long-term & short-term debts), in the initial rounds. At the same time, we took care to implement all the steps to avoid emergency loans.

Partners Healthcare had established several financial resources pools, such as the short-term pool (STP) and the LTP, so that they can satisfy different needs of the several hospitals in the network. In more detail, the STP was invested with very high-quality, short-term fixed-income financial instruments. The average maturity of these instruments is about one to two years. STP is always treated as the risk-free part of the hospitals’ holdings. On the other hand, the LTP is thought as the risky part of holdings. It consists of different forms of equity and a smaller fixed-income part.

The costs of capital and capital structures for Pfizer Inc. and its two competitors Merck & Co. Inc. and Johnson & Johnson in the pharmaceutical industry are analyzed in this memo.