Suppose you are the financial manager of a large and profitable publicly traded furniture company in Canada and are planning to expand your furniture operations in Canada given the favourable reception in the market for your furniture products. Discuss the factors that are important in determining your optimal financing policy of the expansion project.

Partial Answer is below ( I just need someone to explain the 4 concepts below and how it relates to the question being answered )

Explain in the following dimensions pertaining to the determination of capital strucure. - Pecking order vs. trade-off; MM theory; - bankruptcy, tax consequences - Impact of investment and financing decision on cash flows and wacc - Transaction costs