Remember to use these questions to help guide you to understanding the problem and the environment as you propose alternative strategies and solutions. Do not provide answers to these questions in a list format.
What is Blanka Dobrynin trying to accomplish through her active-investor strategy?
If Wrigley issues $3 billion in new debt and uses the proceeds to either pay a dividend or repurchase shares, what will be the effects on:
Number of outstanding shares
Book value of equity
Share price
EPS
Interest coverage ratio
Wrigley family voting control
What is the current WACC?
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 repurchase shares?
Should Blanka Dobrynin try to convince the directors to undertake capitalization?
Exhibits are attached below in spreadsheet format.
Please use the following format:
The case study has two parts. Exhibits, etc. should be included if necessary.
Executive Summary (required for all assignments, not to exceed three double-spaced pages)
Introduction: Here, you will provide general background information for the case and introduce the main issue. This should be a single, short paragraph. Use your own words, not words from the case author.
Problem statement: Isolate the key issues from the case. When possible, quantify the problem (for example, "The Acme Company does not have sufficient capacity to meet the forecasted demand of 10 million units per year".) This should be a few sentences at most combined into a paragraph.
Environmental Analysis: Use up to two pages to succinctly describe the various issues that need to be considered. This is where you can summarize your analysis and incorporate the relative strengths and weaknesses. Discuss resources, market forces, competition, technology, etc.