Grand Ice Cream 534.0 44.3 Empire of Carolina‚ Inc. 51.4 89.8 Steve’s Homemade Ice Cream 37.4 3.1 Hershey Foods Corp. 4002.5 282.9 Tootsie Roll Inds. 728.8 0.0 Average E/TMV Equity Beta Asset Beta 0.98 1.2 1.17 0.92 1.4 1.29 0.36 0.3 0.11 0.92 2.5 2.31 0.93 1.0 0.93 1.00 1.0 1.00 0.85 1.23 1.14 Estimated WACC using short-term and long-term Treasuries: WACC S Trf 4.56% 1.14 * 9.2% 15.0% WACC L Trf 7.42% 1.14 * 7.4% 15.9% J. K. Dietrich - FBE 532 – Spring 2006 Valuations under Varying
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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 be appropriate stretegy to have $2 billion debts instead of $3 billion. This examination also states that the firm needs to repurchase its share by the debts rather than pay dividend. 1. Introduction
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Wrigley would better satisfy shareholders‚ through the increase in share price and earnings per share (EPS) as compared to paying dividends. Doing so would also afford managers more financial flexibility and decrease the weighted average cost of capital (WACC)‚ increasing the value of the firm. Introduction In 2005‚ Wm. Wrigley Jr. Company‚ the world’s largest manufacturer and distributor of chewing gum‚ announced plans for a $3 billion debt issue. The problem facing Wrigley’s was whether the company
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requirements‚ and tax effects are all included in these cash flows. The CFO also made subjective risk assessments of each project‚ and he concluded that both projects have risk characteristics that are similar to the firm’s average project. Allied’s WACC is 10%. You must determine whether one or both of the projects should be accepted. A. What is capital budgeting? Are there any similarities between a firm’s capital budgeting decisions and an individual’s investment decisions? Answer: [Show S11-1
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Molson Coors Alcoholic Beverages Industry‚ Team 1 Leah Black Professor Shaked‚ FE449 12:30PM Section Industry Information -Make sure to add info about craft beer -Shift away from beer and towards liquor Key Industry Drivers For beer‚ wine and liquor‚ demand from wholesalers is very important. Companies in this industry must work closely with wholesalers to properly promote their product and ensure shelf space at liquor stores. An issue that arises with wholesaling is state restrictions
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selling a form of cocoa beans? Milton Hershey created the Hershey chocolate bar and was a man of likable qualities and a philanthropist in his community. He always helped those less fortunate than him and served to better his community. Milton Snavely Hershey is highly acclaimed for creating the world famous Hershey chocolate bar‚ but he also deserves respect for his admirable character and his contributions to his community. First of all‚ Milton Hershey deserves respect for his admirable character
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Milton Snavely Hershey created a worldwide phenomenon‚ which started in the heart of Philadelphia. It all started when Milton Hershey was born on September 13‚ 1857 in Derry Township‚ Pennsylvania. Hershey was parented by Veronica “Fanny” Snavely‚ and Henry Hershey. They had other children together‚ but Milton Hershey was the only surviving child. Being the only child‚ Hershey was pushed by his parents‚ who separated in 1867. So he dropped out of school at age 13‚ to apprentice an expert at age
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Wrigley stock? d. Earnings per share? e. Debt interest coverage ratios and financial flexibility? f. Voting control by the Wrigley family? 3. What is Wrigley’s current (prerecapitalization) weighted-average cost of capital (WACC)? 4. What would you expect to happen to Wrigley’s WACC if it issued $3 billion in debt and used the proceeds to pay a dividend or
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The Hershey Company TABLE OF CONTENTS Page Disclaimer 1 Table of Contents 2 Industry Summary 3 Company Summary 7 Mission Statement Analysis/Revised Mission 13 External Analysis Summary 18 Internal Analysis Summary 21 Financial Analysis Summary 24 Alternative Strategies 29 Strategy Recommendation 36 INDUSTRY SUMMARY History
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Financial Analysis of Hershey and Tootsie Roll Keller University ACCT-504 Instructor: Financial Analysis of Hershey and Tootsie Roll Introduction Tootsie Roll and Hershey are two similar companies with a similar product offering‚ but they operate on entirely different scales. In an effort to determine the better investment of the two companies we will utilize multiple financial analysis ratios to gauge the health of the respective companies in terms of liquidity (the ability
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