The Board of Directors,
Hurrs Private Limited.
Sub- “analytical discussion about the available options containing pros and cons of each and potential consequences thereof.”
Here, there are some basic facts which we must keep in our mind that may affect the final decision –
Note – we cannot reach at the final conclusion and if we reach, cannot reach with confidence as we don’t know the financial position in detail and explanatory manner of the business of hurrs private limited in the monitory terms such as how much profit does the concern want to earn ? What is the current earning rate over the assets? What is its Goodwill in the market? What is the cost of capital that it is using? And what is expected & current rate of return of the business? We are looking for a broad idea about the availability of option as which one to accept to the board to the Company and that too with logic and reason available therewith –
Company wants to raise some substantially additional finance and want to decide about the same that is the decision based on capital budgeting, there are various sources which a Company use to raise the fund but in present question Hurrs ( Private Limited ) is a private Company and total value of shareholdings is 50,000 ponds .