Blaine kitchenware, inc.: capital structure

  1. Should Dubinski recommend a large share repurchase to Blaine’s board? What are the primary advantages and disadvantages of such a move? 
2. Consider the following share repurchase proposal: Blaine will use $209 million of cash from its balance sheet and $50 million in new debt bearing at an interest rate of 6.75% to repurchase 14.0 million shares at a price of $18.50 per share. How would such a buyback change Blaine’s: 
a. Debt ratio? 
b. Interest coverage ratio? 
a. Earnings per share? 
3. Calculate the incremental value to Blaine’s shareholders in terms of interest tax shields from the proposed recapitalization in #2 above. Ignore personal income taxes for your analysis. 
4. As a member of Blaine’s controlling family, would you be in favor of the proposed recapitalization in #2 above? Would you be in favor of it as a non-family shareholder?

The post Blaine kitchenware, inc.: capital structure appeared first on essayfount.com.

What Students Are Saying About Us

.......... Customer ID: 12*** | Rating: ⭐⭐⭐⭐⭐
"Honestly, I was afraid to send my paper to you, but you proved you are a trustworthy service. My essay was done in less than a day, and I received a brilliant piece. I didn’t even believe it was my essay at first 🙂 Great job, thank you!"

.......... Customer ID: 11***| Rating: ⭐⭐⭐⭐⭐
"This company is the best there is. They saved me so many times, I cannot even keep count. Now I recommend it to all my friends, and none of them have complained about it. The writers here are excellent."

"Order a custom Paper on Similar Assignment at essayfount.com! No Plagiarism! Enjoy 20% Discount!"