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Wrigley Corp Recapitalization Analysis by Yehan Matuilana is a document available to read on EtoBox.
This case analyzes how Wrigley Corporation should recapitalize using $3 billion in borrowing. There are three main alternatives: 1) use funds to pay dividends, 2) use funds to repurchase shares, or 3) use 80% for share repurchases and 20% for dividends. Analyzing the impact on share value, debt rating, cost of capital, earnings per share, and voting control, share repurchase is best. It increases firm value the most over 10 years compared to the original capital structure. Paying high dividends could harm t
- Author
- Yehan Matuilana
- Language
- EN