Competition Bikes Inc. is considering an expansion to Canada and is trying

Competition Bikes Inc. is considering an expansion to Canada and is trying to determine whether to merge with or acquire the Canadian Biking Inc. facility. Part of the consideration in the decision to merge with Canadian Biking, Inc. or to acquire Canadian Biking is the source and management of the working capital for the operation. In this task, you will prepare a summary report that analyzes the proposed expansion.

Use attached “storyline” section for Task 3 and .xls capital structure analysis

Task:

A. Prepare a summary report in which you do the following:

A1. Recommend a capital structure approach that maximizes shareholder return.

A1a. Justify your recommendation.

A2. Discuss capital budget areas that raise concern. Note: In your comments be sure to address your findings related to Net Present Value and Internal Rate of Return.

A3. Discuss how working capital can be properly obtained and managed for the Canadian expansion.

A4. Discuss whether Competition Bikes Inc. should merge with or acquire the Canadian Biking Inc. facility.

B. If you choose to use outside sources, include all in-text citations and references in APA format.