Refer to the attached and answer the following:
We have discussed many issues in the previous three threads qualitatively. If we are going to persuade the CEO of adding debt to HCSF capital structure, he is likely to demand some precision, some numbers. He would probably ask questions like:
And what do you say would be the ideal capital structure for HCSF?
Do you expect me to accept that we move to such capital structure in one shot or you think that it is better that we go for a more prudent amount of debt to begin with and see what happens?
How much debt in the first move?
What will be the impact of such an amount of debt in terms of value of the company or value for shareholders?
I want you guys to help to answer these questions
