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In 5 to 8 pages, write a report based on the following scenario: de la Portilla food stores, a family owned grocery store chainheadquartered in…

In 5 to 8 pages, write a report based on the following scenario:
de la Portilla food stores, a family owned grocery store chainheadquartered in Refugio, Texas, is considering a major expansion.The proposed expansion would require de la Portilla to raise $80million in additional capital. Because de la Portilla currently has a debtratio of 50 percent, and because the family members have all theirfunds tied up in the business, the owners cannot supply anyadditional equity. So the company will have to sell shares of thecompany to the public. However, the family wants to insure they retaincontrol of the company. This would be de la Portillas first stock sale,and the owners are not sure just what would be involved. Therefore,they have asked you to research the process and to help them decideexactly how to raise the needed capital. In doing so, you shouldanswer the following questions:
1. What are the advantages to de la Portilla to finance with sharesrather than bonds? What are the disadvantages of usingshares?
2. Are the shares of de la Portilla food stores currently publiclyheld or privately owned? Would this situation change if the saleshares were made?
3. What are classified shares (stock)? Would there be anyadvantage to de la Portilla of designating the shares currentlyoutstanding as founders shares? What type of commonshares should de la Portilla sell to the public to allow the familyto retain control of the business?
4. What does the term going public mean? What would be theadvantages to the de la Portilla family of having the firm gopublic? What would be the disadvantages?
5. What does the term listed stock mean? Do you believe de laPortilla shares would be listed shortly after the company goespublic? If not, where would the shares trade?
Writing Guidelines:
Title page and reference page (not included in the 5 8 pagecount)Must be double-spaced with 1-inch margins and typed in12-point Times New RomanPaper should be proofread for spelling and grammar mistakes.Paper should be in APA style.Please submit in a word document and NOT pdf version.You must cite and reference all texts used, including pagenumbers to avoid plagiarism.Your paper must have an introduction and conclusionparagraphs.You should use headings and subheadings to organize yourpaper.Use at least 5 scholarly or professional practitioner sources inyour paper.

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