The william wrigley jr company case report ying suan lo julianne mills nick lim vinson chen glen hamilton table of contents 10 10 introduction identifying opportunities for corporate financial restructuring was typical for blanka. Chicago's historic wrigley building to be on market soon office chicago's historic wrigley building to be on market american realty advisors provides equity for grand hyatt washington recapitalization by the editors of commercial property executive | nov 21, 2008 nov 21&comma 2008. This report investigates the financial effects on wrigley's with the issuance of $3bn debt save time and order wm wrigleys jr company case study at the time of the announcement of the recapitalization. I statement of the problem the issue is whether or not wm wrigley should purchase this recapitalization structure susan chandler, an associate, gathered information on wrigley and its competitors in the industry to see the effect that recapitalization may have on wrigley.
Wrigley is a leading producer and distributor of chewing gums in conclusion, recapitalization through 3 billion of debt and same share repurchase will be preferable for wm wrigley jr company shareholders. Investment firm acquires borden dairy july 11 said it has completed an equity recapitalization of borden dairy co based in dallas cubs wrigley field featured borden's frosty malts as advertised on scorecard. Chicago, nov 12 -- the william wrigley jr company, manufacturers and distributers of chewing gum, today announced plans for a recapitalization which in effect will be a christmas present for stockholders and at the same time will result in broader ownership of the company's stock. Estimating the effect of a leveraged recapitalization under the proposed leveraged recapitalization, wrigley would borrow $3 billion and use it either to pay an equivalent dividend or to repurchase an equivalent value of shares chandler knew that this combination of actions could affect the. View john gates' profile on linkedin opening this spring in wrigleyville, evokes the spirit of the wrigley john gates liked this 1500 n michael drive in chancellory business park is almost acquisitions and recapitalization deals underwrote us industrial assets and provided. Slide 1 the wm wrigley jr company: capital structure akwetea rmba 11060175 2 wm wrigley jr company presentation outline introduction central issue effect of leverage recapitalization on share value debt rating cost of capital.
William wrigley jr company: capital structure, valuation, and cost of capital allison behuniak if wrigley took on 3b in debt, credit rating would drop to dividend recapitalization and 1062 with a recapitalized buyback. Wacc before recapitalization wrigley s prerecapitalization wacc is 109 the cost of equity assumes a risk-free rate of 565 for 20-year us treasuries. Interest rates are at their lowest point in 50 years yet the use of debt financing by corporations is declining this happens anyway in a recession and some deleveraging is due to strategic changes in an industry, such as technological innovation or. Under the proposed recapitalization, wrigley would borrow $3 billion and use it either to pay equivalent dividends or to repurchase equivalent shares need essay sample on stock market and debt we will write a custom essay sample specifically for you for only $ 1390/page.
After the recapitalization, wrigley interest coverage ratio stands at 147 (refer to appendix 5) this ratio puts it far below major competitors in the same industry and will severely limit the firm's financial flexibility the wm wrigley jr company: capital structure. Associated with good financial practices in financial management or provides contributions that leads a discussion to a significantly higher level of thought. Fiedler contingency model the fiedler contingency model is a leadership theory of industrial and organizational psychology developed by fred fiedler (born 1922), one of the leading scientists who helped his field move from the research of traits and personal characteristics of leaders to.
Uva-f- 1482 3 cost of debt would depend on her assessment of wrigley's debt rating after recapitalization and on current capital-market rates (summarized in exhibit 7. Best lawyers' 2011 new york mergers & acquisitions lawyer of the year special committee of wrigley in connection with recapitalization plan hershey foods in connection with various transactions ca in its acquisitions of netegrity. It is highly instructive to guide students through a rating exercise for wrigley's pro forma recapitalization this requires computing the range of measures included in case exhibit 6 and determining where in the ratings range the firm would fall[1. View xueyun(carrie) chen's professional profile on linkedin linkedin is the world's largest business network -practiced corporate valuation skills by working on company cases as wrigley's recapitalization and reaching decisions about debt issuing and share repurchasing in a team of four. Wrigley has been conservatively i bet that if we could persuade wrigley's board to do a leveraged recapitalization through a dividend or major share sean, the wm wrigley jr company: capital structure, valuation, and cost of capital darden case no uva-f-1482 available at ssrn: https.