Complete the table. 1. In what condition would you recommend the firm to avail of debt? Why? ( Is it RECESSION, EXPECTED, EXPANSION)

The firm would issue 250,000 5% coupon bonds. We assume that the stock will remain at Php50 after the restructuring C. Complete the tables below. Assets Debt Current Php 750 million 0 Equity Debt equity ratio Share Price Shares Outstanding Interest rate Php750 M 0 Php50 15 million 5% Proposed Php750 Million Php250 million (250,000 *Php1,000) Php500 M 0.5 Php540 10 million 5% Recession Php 30 million Current Capital Structure Expected Php60 million Expansion Php100 million EBIT interest Net Income ROE EPS Expansion Php100 million Proposed Capital Structure: Recession Expected EBIT Php 30 million Php60 million Interest Net Income ROF EPS d. In what condition would you recommend the firm to avail of debt? Why? 5 points