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Rasmussen College Capital Structure Discussion

 

Based on the information that you learned about capital structure and budgeting, determine what the optimal capital structure should be for Tootsie Roll inc. 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.

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. Determine what capital structure will work best and Describe the structure using the ratios.

Must be a 500-word APA formatted paper.