Advantages Disadvantages

PROCEED 1. CSAS product covering 1. 8 more months

multiple verticals (Sales, required for
Marketing and Customer complete
service) development
2. Less competition because of 2. Additional
niche product investment of $1
3. CSAS product used to drive million required to
out inefficiencies in all the fully develop and roll
verticals and reduce SG & A out
cost 3. High Priced- $2400
4. Good Return on Investment per user
(Long Term) as per projected
statement of operations
5. 4.

 ► Primary
Market: A market
wherein fresh
stocks are issued.
Here, the seller is
the company itself
and buyer are the

investors.

 ► Secondary
Market: A market
of buyers and
sellers who trade in
securities that have
already been
issued in the
primary market.
The company is
not directly
involved in the
secondary market.

 ► Firms issue
stocks to raise
capital. The capital
is required to:
o ► To
finance
 business
ventures
o ► To
finance
growth
 ► Advantages of
Equity Funding:
o ► Can raise
more capital
than it could
borrow. One
does not
have any
repayment
obligations.
o ► Does not
have to make
periodic
interest
payments to
lenders.
 ► Disadvantages:
o ► Have to
share their
ownership
(dilution) with
other
shareholders.
Shareholders
have a voice
in policies
that affect the
company
operations.

TROJAN HOUSE 1. Sales system of PROCEED with 1. More competitive

features from other systems (Microsoft and Lotus)
2. Short term return on and tough market
investments because of because many CMS
demand vendors started to
3. Only 3 months required for develop their
development and roll out existing CMS
4. Lesser investment as products
compared to PROCEED ($0.2
 million in development and
$0.5 million in
promotion+1/3rd Marketing
cost)
5. Low priced ($400/- to $1000)
2. Low end product in
SA category (focused
on Sales only)

D/E Ratio = Debt / Equity

In Financials, Debt = Long Term Borrowings + Short term borrowings

Equity = Equity Share Capital + Preference Share Capital+ Reserves & Surplus

Debt of HUL :- 0 (Since there is no mention of long term/short term borrowing)

Equity :- 216.27 + 3060.78 = 3,277.05

D/E of HUL :- 0/3,277.05 = 0

Capital Gearing Ratio:

Stricter version of D/E Ratio.

It treats preference share capital as a debt
Formula = (Debt + Preference share Capital) /Equity
In Financials, Equity = Eq