5.0 Appendix Appendix 18 Appendix 29 Appendix 310 Appendix 412 Appendix 513 Appendix 614 Appendix 715 Appendix 816 Appendix 917 Appendix 1017 Abstract This report examines the impacts of recapitalization of Wm. Wrigley Jr‚ Company which is unleveraged firm in 2002. This recapitalization with $3 billion debts increases the firm’s value and share price. On the other hand‚ it could be a risky strategy for Wrigley; therefore‚ based on our WACC analysis‚ the report indicates that it would
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A leveraged recapitalisation by Sealed Air Corp in our opinion was a good idea because the corp. has reached a stage where they have adequate manufacturing capacity to meet the demand for its products during the next several years without significant additional capital expenditure. Moreover they have generated more than sufficient cash flow from the operations to support the growth of their operations and capital expenditure. The recapitalisation of corp. is good for both the organization as well
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THE MACROECONOMIC UNCERTAINTY IN THE OIL AND GAS EQUIPMENT SERVICE INDUSTRY We explore how the macroeconomic fluctuation can really affect the performance of a company. We analyze the companies of the oil and gas equipment service industry: FMC Technologies‚ NOV‚ and Schlumberger. We use the MUST Analysis in order to discover what were the macroeconomic variables that really affects our companies’ performance‚ the magnitude‚ and the direction of the variables with the performance. The data sources
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Introduction Kohler Company was faced with a very tough decision of whether or not to settle outside of court or go to court to settle with the dissenting shareholders. We will take you through the history of the company and why they recapitalized. Also‚ we will touch on some of the risks of going to trial to have the courts set a price. We have also broken down the numbers and found many different prices found by using the dividend growth model and the multiples approach. We will also show how different
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accomplished many goals that she planned to succeed. For example‚ she collected bugs for most of the frogs in the pond‚ she led the protest for women rights‚ and she stood up for what was right. Besides all of this‚ Eugina was a part of the FMC‚ Froggie Marine Corps. She protected and served our community with a passion. Sadly‚ on one of her
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considering a recapitalization that involves issuing debt and repurchasing equity. UST has a long history of a conservative debt policy. However‚ in 1998 they reinstituted their share buyback program. This means that they intended to issue up to $1 billion in debt in order to repurchase equity. Their intentions in repurchasing equity are to maximize earnings per share and receive a tax shield through their high amount of debt issuance. 2. Describe the pros and cons of the recapitalization from the
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consider a recapitalization plan in which UST borrows up to $1 billion to repurchase its stocks. The marginal effect of the recapitalization will be a $380 million increase in firm value‚ which is the present value of interest tax shield. Besides the recapitalization benefit‚ management also needs to notice the costs of recapitalization‚ which include higher bankruptcy costs and a potential of lower credit rating. UST has a high and constant dividend payout history since 1912. The recapitalization will
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shareholder benefit. Is the proposed recapitalization the best response? There are two answers to this question. USG’s board debated a number of alternatives. They considered repurchasing additional stock‚ selling equity to a friendly third party or selling the entire company to a friendly acquirer. In fact‚ U.K. based BPB industries was a possible White Knight". However‚ analysts have also drawn attention to the fact that the proposed recapitalization would burden the company with debt‚
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name brand recognition‚ historical pricing flexibility‚ and growing smokeless tobacco demand. However‚ UST faces business risks including eroding market share‚ tobacco lawsuits‚ and reduction in innovation. UST Inc. is considering a leveraged recapitalization to help in shielding the tax‚ increasing the share price and eliminating idle cash and debt
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References: Whirlpool Corporation (2006): About Whirlpool Corp. retrieved September 30th‚ 2006 from: http://www.whirlpoolcorp.com/about/default.asp Project Management (2005): Project Charter‚ retrieved September 29th‚ 2006 from: http://www.1000ventures.com/business_guide/crosscuttings/project_charter.html Balanced
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