Evaluating Tampa Manufacturing's Capital Structure Tampa Manufacturing, an established producer of printing equipment, expects its sales to remain flat for the next 3 to 5 years because of both a weak economic outlook and an expectation of little new printin tech oog development over at penoOn th base of t scena ten s bor has instructed its management to institute programs that will allow it to operate more efficiently, earn higher profits, and, most important, maximize share value. In this regard, the firm's chief financial officer (CFO), Jon Lawson, has been charged with evaluating the firms capital structure. Lawson teevestnat the curent cap tal strucure, wmin, contains 1D%det and 90% equity may lack adequate financial leverage To evaluate the s capital structure. La son has gathered the data s um rzed n e ollowin able on he ame capital structure (10% debt ratio) and two alternative capital structures-A (30% debt ratio) and B (50% debt ratio that he would like to, consider. nd an twill and withfirms%pt ' Capital Structurea Current (10% debt) $1,000,000 9 0% 100,000 shares Source of capital (30% debt) $3,000,000 100% 70,000 shares (50% debt) S5,000,000 12 096 40,000 shares Coupon interest rateb Common stock