Establish a finance plan that assumes the sales estimates at the take price level would have been increased by $500,000.

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answerhappygod
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Establish a finance plan that assumes the sales estimates at the take price level would have been increased by $500,000.

Post by answerhappygod »

Establish a finance plan that assumes the sales estimates at the
take price level would have been increased by $500,000. This means
that the current take price level of $9,170,000 would increase by
$500,000. This change would offer more collateral to the bank, and
the bank would then increase the GAP loan. The GAP loan requires
200% collateral in unsold rights. This change would impact the
equity investment.
Question:
What would be the new equity investment be if the budget
stays the same?
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