Whole Foods financial recommendation for the next 2 years Essay

Whole Foods financial recommendation for the next 2 years - screen ExampleThe company still plans to expand into other areas such as Australia, joined Kingdom and the United States as well. Besides the expansion, Whole Foods also seems interested in introducing new private label intersection lines. Thus for such an expansion and introduction of new product line, the company would need some hood/investment. There are two broad ways in which the company can obtain surplus capital in order to pay all its plans. Those two sources of pay areEquity pay This is a way through which Whole Foods Market can issue their pcts within the market. Each share issues within the market would fetch the company some funds. The company would issue the number of shares that they might find out appropriate for the expansion plans. Equity finance is expensive to achieve because of its attached costs such as Advertisement costs, Brokerage costs and in some instance Underwriting costs. The only attract iveness of Equity finance is that it is less risky than debt finance (the other source of finance) as the shareholders i.e. the owners would not flummox to be mandatorily paid their invested amount.Debt Finance Debt Finance can be acquired through Banks, private and other institutional investors. Debt finance is basically a loan commitment that has to be paid as soon as it fall due. Although debt finance is cheaper than equity finance, it carries with itself a burden to repay the liability as soon as it fall due and it is because of this reason that debt finance is considered to be risky. The other issues that are related to debt finance are that the marge of the loan would also be of the essence. Longer the period, higher would be the cost of debt i.e. the interest rate that would have to be paid on the loan commitment.Hence it can be argued that it depends upon a companys culture, philosophy and risk appetite as to how the expansion may be financed. Equity finance would intro duce to the dilution of shares, which