Prepare A Memorandum Addressed To William And Randy

Case and Instructions
Name
Institutional Affiliation
Case and Instructions
MEMORANDUM
to:William Mays from:subject:raising cashdate:CC:Randy Vicenti
Facts
You are two equal stockholders of Square Dog, Inc. Mr. William, you are both a keen boater and king of the grill. Your combination of being both a keen boater and king of the rack has proved to be very frustrating to you, since, the children's hot dogs keep rolling off the grill on your houseboat when waves rock the boat. There is a need for another production line to keep up with the high demand of square hot dogs. You need $10 Million for the additional production line.
Issue
Mr. William, you have investigated various alternatives concerning the subject of the children's hot dogs that keep on rolling off the grill on your houseboat when waves rock the boat. You have rapidly recognized that the answer would be to have a square hot dog. It is though expensive to make square hot dogs using the current technology. You need to raise the required $10 Million.
Recommendation
I recommend that you raise your firm's capital through issuing of bonds. It is necessary to increase the company's capital through issuing of bonds because the organization is still young and does not have an excellent credit rating. The lack of proper credit rating might make the company not be able to borrow the $10 Million that you need. Selling of bonds will also give your business concern the advantage of a reduced corporate tax.
Discussion:
Since it is expensive to make square hot dogs usin...