Module 11 – DQ1

DQ1: Based on Reading of Chapter 5

Misty (who you have read about before) has been having a hard time meeting her cash needs as she tries to grow her company.  She has been able to find someone who is willing to invest in her company and get a 30% share in the company.  However, she feels that what they have offered her for the 30% share is much less than the market price.  She is concerned about the how much control she would have to give up if she does take the offer.  Misty also has the ability to get a loan but is worried if she will be able to pay the interest back in time. Based on your readings what would you recommend to Misty – should she get a loan or should she sell a part of her company for equity funding?