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2. If Harris ended up to move forward With all the acquisition, which financing substitute needs to be chosen, and why? Would Broadway be effective at servicing its financial debt right after acquisition?

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Regarding the pessimistic state of affairs (sixty two Million bucks with whole personal debt and forty five million dollars which has a 50/50 financing design), when the Networking Capital ratio gets to be greater than anticipated as well as the income advancement charge falls underneath expectations, the value of the company is much below the required amount of cash for offer. (For calculations, you should check with the Excel file).

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