Question
Here is some additional information on this, I can also provide what I have already, what is in bold is what needs to be taken
Here is some additional information on this, I can also provide what I have already, what is in bold is what needs to be taken care of. Gentry Inc. is a mid-sized tech firm (200 employees and $300 million in revenue) and has been privately held since the firms inception ten years ago. The organizations board of directors is keen on expanding the operations globally to take advantage of a growing market. Based on reports from the research and development team, the organization can increase its profitability metrics by 15 to 25% if it expands the operations to China, Japan, and Germany. Becoming a multinational organization will not be easy. To finance this expansion, the board of directors has decided to take the organization public and issue some bonds to raise an additional $50 million. The research team has already determined that the organization meets the financial requirements outlined by the Securities Exchange Commission. The goal is to maximize the Initial Public Offering (IPO), and the leadership must efficiently manage the capital, measure the risk of the investments, and ensure the financial metrics are robust relative to similarly sized organizations.
1) Please help determine what the optimal capital structure should be for Gentry. Please determine how much equity (common stock) the company will offer in the IPO and how much debt the company should assume in their global expansion to meet the goal of $50 million.
If you could make recommendations in word document please! I had someone try to do this in an excel sheet and it was awful.
Also, if you could show how you were able to determine what capital structure will work best with the initial assessment. Describe the structure using the ratios
Please include the dollar amount of equity (common stock) the company should issue in the IPO and how much debt the company should use for this expansion to reach the $50 million goal. Explain your rationale. Note: there is no single answer to the question of the firms optimal capital structure. Your assessment is weighted more heavily toward your logical explanation rather than having the correct values for debt and equity.
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