Please read the attached case. Answer salient questions within case and focus on capital structure and decisions that executives are forced to make in these situations. Please write 2-pages and include any necessary Exhibits/Appendices as well.
Think About:
1) Should RD borrow money or sell shares? EBITDA Analysis /can company afford this?
2) Should you choose debt or equity?
3) Quantitative numbers to see why you make decision you made
4) What produces lowest WACC?
5) 35% tax rate for RD.