Treebone Design Inc. - Private Placement

The sole owner of Treebone Design, a custom furniture manufacturer in Montreal, wants to add a moulding division. The expansion requires $700,000 in funding for a new building plus additional funds for working capital. A developer proposes to provide financing but wants a portion of equity in return. Students must utilize an Excel model to assess the merits of the proposed deal, Ivey product 7B05N004.