Finance of Media

Running head: FINANCE OF MEDIA
Finance of Media
Name of the Student:
Name of the University:
Author’s Note:
Course ID:

1FINANCE OF MEDIA
Table of Contents
Question 1:.......................................................................................................................................3
Question 2:.......................................................................................................................................3
Question 3:.......................................................................................................................................3
Question 4:.......................................................................................................................................4
Question 5:.......................................................................................................................................4
Question 6:.......................................................................................................................................4
Question 7:.......................................................................................................................................5
Question 8:.......................................................................................................................................5
Question 9:.......................................................................................................................................5
Question 10:.....................................................................................................................................5
Question 11:.....................................................................................................................................6
Question 12:.....................................................................................................................................6
Question 13:.....................................................................................................................................6
Question 14:.....................................................................................................................................6
Question 15:.....................................................................................................................................6
Question 16:.....................................................................................................................................7
Question 17:.....................................................................................................................................7
a) Implied interest rate on Shoot’s debt:..........................................................................................7
b) Shoot’s EBITDA in 2017:...........................................................................................................8
c) "net" refers to after Property/Equipment:....................................................................................8
d) Describing how, in retrospect, you might have capitalized Shoot more prudently:...................9
e) Stating the opinion on the loan approaching date:......................................................................9

2FINANCE OF MEDIA
f) Describing the internal consideration and analysis:.....................................................................9
Reference and Bibliography:.........................................................................................................11

3FINANCE OF MEDIA
Question 1:
True
Question 2:
The information provided in the above case is relevantly true, as start-up or emerging
growth companies require equity financing, as it does not hamper their overall profitability
conditions. Moreover, the emerging companies mainly require high level of income from
operations, while the equity financing would only fuel their growth and allow them to achieve
higher growth rate. However, the use of debt financing would directly increase their finance cost
and reduce the actual profits that could be used by the company to fuel its further growth. Start-
up and emerging companies mainly utilise all their profits as the source of finance to further
increase their operations (Minsky 2015).
Question 3:
Insufficient data, the case scenario directly indicates that the current company has high
current assets, where no information is provided regarding its bankruptcy conditions. The current
valuation of 10 million in current assets and only 1 million in long term liabilities indicates that
the company will not fall under insolvency conditions. However, we are not able to gather
relevant information regarding the other legal obligations and short-term liabilities that is being
held by the company over the period.