Fin571

In: Business and Management

Submitted By usmcmom3962
Words 274
Pages 2
Guillermo Furniture Store Recommendation
Guillermo Furniture Store (Guillermo) is a small business that deals in handmade custom furniture that is created by the sole proprietor Guillermo Navallez and his employees. Guillermo is located in Sonora, Mexico, an area that has become both a tourist attraction and a place for some people to call home. Guillermo is facing the liquidation of the store if the decision maker does not analyze all possible alternatives and accept the recommendation of a final decision (University of Phoenix, 2010). This paper will examine a few alternatives that have been suggested for the success of the enterprise. A recommendation of a final decision for Guillermo has been included, in addition to, the justification for the recommendation. A pro forma cash flow budget for the company has been included as a guide for the next five years beginning with year 2012 and ending with year 2016. Alternatives
Applying the principles of finance to any situation can result in a more informed decision that is made from a suggested recommendation. Capital Market Efficiency, Time Value of Money, Signaling, Behavioral, and Risk Return Trade-off are financial principles that the decision maker can focus on before accepting a final recommendation about the firm’s capital structure (Emery, Finnerty, & Stowe, 2007).

Final recommendation

Pro forma cash flow budget
2012-2016

Conclusion

References
Emery, D.R., Finnerty, J.D., & Stowe, J.D. (2007). Corporate financial management. 3rd ed. New Jersey: Pearson-Prentiss Hall.
Elliott (2011).
Gruenhagen (2011).
Hartley (2011).
Tullis (2011).
Zelaya (2011). University of Phoenix. (2010). Guillermo’s Furniture Store [Computer Software]. Retrieved from the University…...

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