Professional Documents
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Equity Investment: Sources and Application of Funds
Equity Investment: Sources and Application of Funds
Equity Investment: Sources and Application of Funds
We have to manage capital from different kinds of source. Our restaurant is kind of new in
the market so we have to invest money effectively otherwise we may face some problems.
We will borrow initial capital from 2 sources. One is internal source and another is external
source.
Equity Investment
BorrowFundfromNon-financial institute.
Internal Fund - Tk. 12, 52,000 will be financed through equity financing, where
there will be 5 partners and each of the partner will contribute Tk. 2,50,500.
External Fund-
2. Borrowing from friends and family- For some initial cost, we borrowed some
amount from our nearest peoples, which is 3, 00,000 Taka.
Growth Analysis:
If we talk about the projected sales growth of our restaurant, we can see that it will increase
in yearly basis. In 2020, 1st quarter the estimate sale is 9, 60,000 Taka with 20 customer/day
basis. And in the 2nd and 3rd quarter the sales are 14, 40,000 & 19, 20,000. In the upcoming
years, that means, in 2021 to 2024 the projected sales are 72,00,000, 79,20,000, 86,40,000 &
1,00,80,000 Taka. So we will be having a growth each year as the level of operation will be
increased day by day and we will be able to grab more potential customers...Eventually, we
will be able to replace and renew our business also will pay off all the liabilities and the
Initial capital with these growing sales.