The Angel Investor

by / On November 5, 2020 / In APA (edition "APA 6"), Business and Management

SEE ATTACHED DOCUMENTS FOR FULL DETAILS

    Explain the tax benefits of debt financing.
    Calculate the AT- WACC with a 60% debt and 40% equity financing structure.
    Apply the calculated AT-WACC to explain why this is or is not a viable investment for you as the Angel Investor.
    Explain a financial restructuring AT- WACC (given changes to proportions of % Debt vs. % Equity financing) that would create a positive ROI.
    Explain why you as the Angel Investor would require more or less debt vs. equity financing. Be sure to note the role of the Unified Commercial Code-1 (UCC-1) document in this transaction and the order of claim on assets in times of a bankruptcy.
    Submit your response in a minimum of a 2-page APA formatted Microsoft Word document to the Dropbox with additional title and references pages.

* Must use the classroom book for reference
* Key thing to discuss is whether debt or equity is better
* What would be a good level of debt?
* SHOW THE MATH!