considers the possible gains from increasing the debt capitalization of The Wm. Wrigley Jr. Company. Blanka suggests Wrigley raise the amount of $3 billion in debt of the capitalization while Wrigley has been conservatively financed and remained no debt at the end of 2001. This report is aiming to analyze whether Wrigley should use $3 billion debt recapitalization to either pay dividends or to repurchase shares. 2.0 Current Capital Structure Generally‚ firms can choose among various capital
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The Wm. Wrigley Jr. Company: capital structure‚ VALUATION and cost of capital Introduction: Blanka Doborynin a managing partner of AURORA BOREALIS LLC tries to initiate a research for a potential investment in Wrigleys. They are trying to recapitalize the firm. Wrigley’s which is 100% equity financed has a market value of $13‚103‚000‚000 the question begins if it is totally equity financed is it running at its efficient level? Or Is it better to recapitalize the structure and thereby bring
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(case Exhibit 7)‚ a risk premium is assumed 7% (or 5%)‚ and uses Wrigley’s current beta of 0.75 (case Exhibit 5). 4. WACC after recapitalization The increase in leverage will affect Wrigley’s WACC in at least three ways: 1. Cost of debt: Wrigley’s debt rating will change from AAA (consistent with no debt) to a BB/B rating reflecting the higher risk. The postrecapitalization credit rating is a matter of judgment. It is highly instructive to guide students through a rating exercise for Wrigley’s
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The William Wrigley Jr. Company Case Report Ying Suan Lo Julianne Mills Nick Lim Vinson Chen Glen Hamilton Table of Contents 1.0 1.0 Introduction Identifying opportunities for corporate financial restructuring was typical for Blanka Dobrynin‚ a managing partner of the hedge fund Aurora Borealis LLC. In 2002‚ with the then debt free William Wrigley Jr. Company (Wrigley) in her sights‚ she asked her associate Susan Chandler to conduct
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Concepts of Leadership | | Leadership is a process by which a person influences others to accomplish an objective and directs the organization in a way that makes it more cohesive and coherent. Program directors and managers can use this resource to inspire staff to higher levels of teamwork. This article defines concepts of leadership in terms of what a leader must be‚ know‚ and do. Reprinted with permission from Donald Clark. | Good leaders are made not born. If you have the desire and
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Qualities that traditionally associated with leadership are toughness‚ determination and vision. However‚ Tyco’s managers believe these are insufficient. Through the interviews with Tyco’s employees‚ we realized that truly effective leaders are also distinguished by a high degree of innovation‚ and communication. Tyco’s VP or innovation Robert Locke believes innovation is essential for a company. He says‚ today’s consumers continuously looking for better goods and services. A good leader need to
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Assessment item 1 The Concept of Leadership Value: 30% Due date: Variable Return date: - Length: 1‚500 words Submission method options Alternative submission method Task This is an online task. Students will be placed in small groups. Each student must post a response to the three questions given. Students are encouraged to comment on other postings. The task comprises a discussion where you will respond to at least three questions. The questions will be posted online on the MGT367 Interact
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CONCEPT OF LEADERSHIP * I used to think that running an organization was equivalent to conducting a symphony orchestra. But I don’t think that’s quite it : its more like jazz. There is more improvisation -Warren Bennis * GOOD LEADERS ARE MADE NOT BOR. IF YOU HAVE THE DESIRE AND WILL POWER‚ YOU CAN BECOME AN EFFECTIVE LEADER. GOOD LEADEERS DEVELOP THROUGH A NEVER ENDING PROCESS FO SELF P STUDY‚ EDUCATION‚ RANING AND EPXRERIENCE. * GOOD LEADERS ARE CONTINUALLY WORKING AND STUDYING TO IMPROVE
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Concept of Leadership Leadership - what is it? Many definitions have been offered‚ cultural stereotypes abound‚ numerous programs focus on leadership development‚ but the question remains. In fact‚ leadership is many different things to different people in different circumstances. When we think of leadership‚ we often think first of famous individuals. We may think of great political leaders: Washington‚ Churchill‚ Roosevelt. We may think of the leaders of social movements: Gandhi‚ Martin Luther
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MGT 8037 TEAM LEADERSHIP ASSIGNMENTS 1-4 Prepared by: Anthony Gunther Student Number: 5014570 Prepared For: Bernadette Lynch Date Submitted: 04/10/11 Extension Granted: Yes TABLE OF CONTENTS Annotated Bibliography 5 Reflective Paper 1 8 Reflective Paper 2 12 Reflective Paper 3 16 1. Annotated Bibliography Source 1: Hoyt‚ C.L & Blascovich‚ J 2003‚ Transformational and transactional leadership in virtual and physical environments
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