Based on the information that you learned about capital structure and budgeting, determine what the optimal capital structure should be for Gentry. You will need to 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. Provide your recommendation in a 500-word APA formatted paper. Determine what capital structure will work best with your initial assessment. Describe the structure using the ratios. 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 firm's optimal capital structure. Your assessment is weighted more heavily toward your logical explanation rather than having the correct values for debt and equity.

For this assignment, you will apply what you have learned from the unit lesson and required unit resources. The Waterways (WP27) case is located on page 27-35 of the textbook. Waterways puts much emphasis on cash flow when it plans for capital investments. The company chose its discount rate of 8% based on the rate of return that it must pay its owners and creditors. Using that rate, Waterways then uses different methods to determine the best decisions for making capital outlays. This year, Waterways is considering buying five new backhoes to replace the backhoes it now has. The new backhoes are faster, cost less to run, provide for more accurate trench digging, have comfort features for the operators, and have 1-year maintenance agreements to go with them. The old backhoes are working just fine, but they do require considerable maintenance. The backhoe operators are very familiar with the old backhoes and would need to learn some new skills to use the new backhoes. The following…

Managers can choose from several analytical techniques to help them make capital investment decisions. Each technique has advantages and disadvantages.   Respond to the following in a minimum of 175 words:  Provide an example or brief business case in which you can apply the NPV, IRR or payback concepts to make the most adequate financial decision.  Select one of the techniques - NPV, IRR, or payback and explain why you would choose this technique as well as any disadvantages when compared to the others.

The market values and after-tax costs of various sources of capital used by Ridge Tool are shown in the following table. Source of capital Market value Individual cost Long-term debt $700,000 5.3% Preferred stock    50,000 12.0    Common stock equity   650,000 16.0    a. Calculate the firm’s WACC. b. Explain how the firm can use this cost in the investment decision-making process. Please show your work.