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CAPSTRUCT Co is considering restructuring their capital. The CFO would like to achieve a debt to total capital ratio of 30%. 1. Complete the Capital

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CAPSTRUCT Co is considering restructuring their capital. The CFO would like to achieve a debt to total capital ratio of 30%. 1. Complete the Capital Structure analysis and the scenario anlysis under the proposed restructuring. 2. How would the restructuring be implemnted(effected)? CAPSTRUCT Co Capital Structure Analysis Current Change Assets Debt Equity Debt/Equity Debt to Total Capital Share Price Shares outstanding Interest rate 10,000,000 10,000,000 0% 0% 25.00 500,000 CAPSTRUCT Co Current Capital Structure: No Debt EBIT Interest Expense PBT Taxes Net Income ROE EPS 800,000 1,000,000 1,200,000 (252,000) 948,000 948% $1.90 800,000 1,000,000 21% 632,000 632% 1.26 90.000 7900% 158 posed Capital Structure 30% Debt to TC Expested EBIT interest Expense PBT Tax Net Income ROE EPS 3:30 P

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