Borders Hotel Corp

5. Huron electric motor and boundaries hotel will be close

2. Huron motor unit mainly visitors

* Boundaries hotel largely business

2. Business raising because of COMBUSTIBLE

* Precisely what is the total investment? $4. 5million

* Seed money $75, 1000

* Terrain $975, 1000

* Building $2, three hundred, 000

* Furnishings $1, 100, 000

* Organization costs 50 dollars, 000

* What is currently secured?

* Owners common talk about: 6 * 25, 000 = 150, 000

* They already have the land: $975, 000

2. 10%, 5-yearloan: $1. you million

* As a whole they have anchored $2, 225, 000, staying is $2, 275, 500 (should total 4. five million) 5. Option 1: 20-year term at 8% mortgage to make 2, 275, 000 2. Option a couple of: sale of 24 units of $100, 500 per unit with each unit composed of 10, 000 shares every single minus legal cost (2, 400, 000-125, 000=2, 275, 000) 2. Option 3: sale of 24 units of three, 000 preferred shares at $25 and 2, five-hundred common stocks minus legal cost (2, 400, 000-125, 000=2, 275, 000) | Option 1| Option 2| Option a few

Asset| 4, 500, 000| 4, 500, 000| 5, 500, 000

Legal cost(Capitalization)| | a hundred and twenty-five, 000| 125, 000

Total Asset| 5, 500, 000| 4, 625, 000| 4, 625, 500

10% 5-year loan| you, 100, 000| 1, 100, 000| you, 100, 000

8% 20-year loan| a couple of, 275, 000| 0| zero

8% @ $25 preferred| 0| 0| 1, 800, 000 (3, 000*25 *24)

Common shares| 1, 125, 000(150, 000+975, 000)| a few, 525, 000(1, 125, 000 +2, 500, 000)| one particular, 725, 000(1, 125, 000 + six-hundred, 000)| # of common shares| 112, 500 @ $10| 352, 500| 172, 500

# of stocks owned by simply Karen| 90, 000(975, 1000 +25, 000)| 100, 000| 100, 000

5. In alternative 1 Karen will have control over most of the revenue because the girl owns most the stocks * Option 1 has got the most possibility to go insolvent because of the 2 decade loan (very risky) 5. Option several has recommended shares and therefore if the payouts were handed for two consecutive years, the preferred stocks could decide a majority of the board of directors (very risky) | 100% occupancy...

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