Funding Sources for Merlin Entertainment

This assignment examines the diverse range of funding sources available to Merlin Entertainment for capital projects. It discusses the advantages and disadvantages of different options, including bank loans with higher interest rates, equity financing through stock market listings and dividend payouts, European regional development funds for EU companies, and government funding from both state and national levels. The analysis highlights the cost implications associated with each funding source and their impact on Merlin Entertainment's financial strategy.

Funding sources in order to raise capital for the business projects
Equity financing: As per this, the company firstly go for the
listing process in the stock market and then issue equity shares.
Once the shares issues in the market then stockholders purchase
these. Moreover, amount of buying stock by shareholders is used
by the Merlin Entertainment for capital projects (Sources of
Finance, 2017). Further, it works at the national and international
both level. Further, financing cost under this source is in the form
of dividend amount which given from profit generated by MEP
company.
European regional development fund: The source which gives funding services
to the companies of European Union only is European regional development fund.
It supports to Merlin Entertainment company at the only regional level of project
instead of national or international. Cost of finance under this is negligible because
main role of the source is to develop regional area.
Government funding: Under this government of the country plays major role and
provide money to the cited TTM company for developing capital projects. In this
two level included which are like state and national where fund given by state and
central government of the country. Cost of finance is comparatively low which is in
terms of the taxation amount.
Tourism fund department: In the country different
frameworks are prepared on the basis of industry which
are like service, manufacturing, tourism etc. When the
Merlin Entertainment company going to raise capital for
any kind of business projects then tourism fund
department is highly supportive (Ranaldo and
Wrampelmeyer, 2016). When talking about the costing
aspect of financing than it imposes very low proportion
of expense of finance on MEP.
Bank Loan: Another widely financing
source is bank loan where Merlin firm
approaches up to the commercial banks
and take fund from them. Behind raising
capital from such kind of financials the
TTM organisation has to pay interest
amount to banks which is comparatively
higher among all the described
(Srivastava, 2017).