The University of Hong Kong Case Study on WM Wrigley JR.Company. Individual Written Assignment Table of Contents Executive Summary 1 Introduction 2 Analysis of the Issues 2 Porter’s Five Forces Analysis 2 Current Rivalry (yellow zone) 2 Substitute (yellow zone) 3 New Market Entrants (green zone) 3 Supplier (green zone) 4 Customer (red zone) 4 Major Issues 5 Analysis of Options 5 Positioning at medium to high end in sugar confectionery 5 Developing new concepts in sugar
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EFB340- FINANCE CAPSTONE Case Study 1- The William Wrigley Jr. Company: Capital Structure‚ Valuation‚ and Cost of Capital Group: 4-4 ABSTRACT This report examines the impact a $3 billion bond issue will have on the value of the William Wrigley Jr. Company. When analysing its various impacts‚ the expectations that arise as a result of the leveraged recapitalisation include an increase in the share price & cost of capital and reduced earnings per share. In essence‚ the potential benefits
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Soldier Field I have never been astounded by such marvelous architecture until I laid my eyes on Soldier Field in Chicago‚ Illinois. Soldier Field seemed like a dragon‚ just engulfing everyone who was spectating the Mexico vs Bosnia game on May 2011. When I first laid eyes on the monstrosity‚ I was very intimidated. The thought of entering this behemoth marveled me and made me even more excited to enter and watch the Mexico soccer game that I was anxiously waiting for! Chicago itself is a marvelous
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Chapter 1 Case Study: Mars Buys Wrigley in One Sweet Deal 1. Why did Wrigley’s share price not rise to the $80 offer price following the announcement of the merger? Why did competitor Cadbury’s shares gain 3.5 percent following the announcement? Answer: Some investors did not expect the two family-controlled companies to approve the deal. Cadbury’s shares rose on speculation that it could become a takeover target. Both Kraft and Nestle could be interested in acquiring Cadbury. While Nestle
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Wm. Wrigley Jr‚ Company Capital Structure Wm. Wrigley Jr‚ Company Capital Structure 8/23/2013 8/23/2013 EFB340 Finance Capstone Case Study 1 Group S3 Dat Bui (N8360928) JeongHwan KWON (N8400822) Honghu Ye (N8106258) EFB340 Finance Capstone Case Study 1 Group S3 Dat Bui (N8360928) JeongHwan KWON (N8400822) Honghu Ye (N8106258) Table of Contents Abstract1 1.0 Introduction2 2.0 Analysis Share price2 Weighted Average Cost of Capital2 Earnings
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investment in growth and stability of the firm. The hedge fund plans to short the stock at the moment it rises to the optimal level due to strong signals the hedge fund is trying to pursue. Effect of recapitalization on WACC The current WACC of Wrigley is 10.9%. Since it is all equity firm the WACC is same as cost of equity. Raising $3billion debt for repurchase of stock or dividend would change the capital structure of the firm. The raised debt‚ because of the debt tax shield under good credit
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Abstract This Report investigates the financial effects on Wrigley’s with the issuance of $3bn debt. It explores two alternate means of allocation for the funds; pay out a one-time dividend or carry out a share repurchase. Both methods are analyzed in regards to an optimal capital structure and maximizing share holder value (value of the firm). A compilation of historical data and future predictions were used for the basis of this report‚ and recommendations. Literature Review The following
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Presentation Transcript KFC: KFC Case study of KFC BACKGROUND OF KENTUCKY FRIED CHICKENS(KFC): BACKGROUND OF KENTUCKY FRIED CHICKENS(KFC ) KFC is based in Louisville‚ Kentucky‚ and is the world’s most popular chicken restaurant. Founded by Colonel Harland Sanders in the early 1930s by cooking & serving food for hungry travellers. In 1952 Sanders started franchising his chicken business & named it as KENTUCKY FRIED CHICKEN. KFC is the world’s largest restaurant company in terms of system
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Running Head: THE WM. WRIGLEY JR.COMPANY CASE STUDY THE WM. WRIGLEY JR.COMPANY: CAPITAL STRUCTURE‚ VALUATION AND COST OF CAPITAL Situation Aurora Borealis LLC is a hedge fund that has around $ 3 billion under management and they
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Gum: Managing Brand Adolescence 1. Since William Wrigley Jr. established Wrigley chewing gum company in 1914‚ the company has been expanding for many years. Despite the company experience market downturn in the period of World War II and Cold War‚ Wrigley once again dominated the chewing gum market after the end of the war. Wrigley still dominated the chewing gum market with 50% market share. It can be said that before 2000‚ the development of Wrigley is very rapid and very successful. However‚ chewing
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