Complete the table

Corporation X currently has no debt in its capital structure. The CFO is considering a restructuring that would involve issuing debt and using the proceeds to buy back some of the outstanding equity. There are 2 milion shares outstanding priced at Php50 per share. The firm would issue 40,000 selling at 105% of face value; the interest would be 15 percent. We assume that the stock price will remain at Php50. Current Proposed Assets Debt Equity Debt equity ratio Share Price Shares Outstanding Interest rate Recession Php20,000,000 Current Capital Structure Expected Pp50,000,000 Expansion Php 70,000,000 EBIT Interest Net Income ROE EPS Proposed Capital Structure: Recession Expected Php20,000,000 - Php50,000,000 Expansion Php 70,000,000 EBIT Interest Net Income ROE EPS In what condition would you recommend the firm to avail of debt? 5 points