Capstone · Week 5
Funding Strategy
Compare equity and debt. Show an amortization schedule and link interest expense into your Income Statement.
See the capstone Rubrics for scoring.
What to include
Tradeoffs and links
- Cap table snapshot for equity option.
- Loan terms and amortization table for debt option.
- Link interest to I/S and ending balance to B/S.
- Short note: pros and cons for your choice.
Excel Requirements
Cap table and loan schedule formulas
- Equity: owners, shares, price per share, ownership %, and post‑money valuation.
- Debt: use
PMT/IPMT/PPMTto build a monthly amortization table. - Feed interest expense to the Income Statement; feed ending principal to the Balance Sheet.
- Show a side‑by‑side summary (monthly payment vs. ownership % given up).
Quality Checks
Sound math and clean links
- Amortization totals reconcile: sum of principal equals loan amount.
- Interest line in I/S changes when rate or term changes.
- Cap table ownership % sums to 100%.
- No hard‑coded totals; all values reference inputs or formulas.
Submission
What to turn in
- Excel file with cap table, amortization sheet, and linked statements.
- Short write‑up comparing equity vs. debt (5–7 sentences).