Gentry Inc. is a mid-sized tech firm (200 employees and $300 million in revenue) and has been privately held since the firm's inception ten years ago. The organization's 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.

• Summarize recommendation for Gentry Inc and its plan to expand internationally. The company is trying to raise $50 million to expand via an IPO and debt issuance.
• Add charts and/or graphs to convey financial information
• Clear statement of the capital structure (how much debt and equity) Exact and definitive
• 5 years projections of revenue returned with NPV method to discount those amounts to the present
• CAPM, arrive at cost of your equity
• WACC for total cost of capital
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Answer rating: 100% (QA)

Answer Recommendation for Gentry Incs International Expansion Gentry Inc has a strategic opportunity to expand its operations globally capitalizing on ... View the full answer