Question Details

Sources Of Capital For Expansion For Bowden Brake Service
Case  Bowden Brake Service 
 Jim Bowden has been operating his business for some time now and thinks it is time to grow and expand. To compute the cost of expanding his existing business, Jim Bowden makes the following estimates: 
                        Adjacent lot                                     $40,000 
                        Metal prefab building                      25,000 
                        Hydraulic lifts                                   15,000 
                        Tools and equipment                        9,000 
                        Parts and inventory                           5,000 
                        Additional operating expenses     55,000 
                        TOTAL                                          $149,000
Questions
1.      Classify Jim's expansion estimates into the three categories of capital: (a) fixed capital requirements, (b) working capital requirements, and (c) growth capital requirements.
2.      Explain to Jim the possible (and realistic) sources of capital for expansion.  Where would you recommend that he go for the funds he needs?  Why?
Write a 750 word paper responding to the questions above. Be sure to use any reference material needed to support your position. 

Please double space your paper.  Grammar, spelling, and punctuation do count. Your work must be original material; properly cite all quoted and/or paraphrased material. Provide at least one scholarly reference.  Quoted material should not exceed 15%.



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