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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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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investment in growth and stability of the firm. The hedge fund plans to short the stock at the moment it rises to the optimal level due to strong signals the hedge fund is trying to pursue. Effect of recapitalization on WACC The current WACC of Wrigley is 10.9%. Since it is all equity firm the WACC is same as cost of equity. Raising $3billion debt for repurchase of stock or dividend would change the capital structure of the firm. The raised debt‚ because of the debt tax shield under good credit
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Wm. Wrigley Jr‚ Company Capital Structure Wm. Wrigley Jr‚ Company Capital Structure 8/23/2013 8/23/2013 EFB340 Finance Capstone Case Study 1 Group S3 Dat Bui (N8360928) JeongHwan KWON (N8400822) Honghu Ye (N8106258) EFB340 Finance Capstone Case Study 1 Group S3 Dat Bui (N8360928) JeongHwan KWON (N8400822) Honghu Ye (N8106258) Table of Contents Abstract1 1.0 Introduction2 2.0 Analysis Share price2 Weighted Average Cost of Capital2 Earnings
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Abstract This Report investigates the financial effects on Wrigley’s with the issuance of $3bn debt. It explores two alternate means of allocation for the funds; pay out a one-time dividend or carry out a share repurchase. Both methods are analyzed in regards to an optimal capital structure and maximizing share holder value (value of the firm). A compilation of historical data and future predictions were used for the basis of this report‚ and recommendations. Literature Review The following
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a managing director of Aurora Borealis hedge fund‚ 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 $3 billion debt recapitalization to either pay dividends or to repurchase shares. 2.0 Current Capital Structure
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Gum: Managing Brand Adolescence 1. Since William Wrigley Jr. established Wrigley chewing gum company in 1914‚ the company has been expanding for many years. Despite the company experience market downturn in the period of World War II and Cold War‚ Wrigley once again dominated the chewing gum market after the end of the war. Wrigley still dominated the chewing gum market with 50% market share. It can be said that before 2000‚ the development of Wrigley is very rapid and very successful. However‚ chewing
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Skittles is a well-known‚ long-standing brand that has pleased consumers for generations. However‚ it is our contention that the name’s growth is stagnating‚ and needs to be revitalized based upon a core marketing goal: bring Skittles from simply a candy – something one consumes on a whim and forgets about – to a brand that engenders both value and feeling for consumers. With such a focus‚ the objective is to influence the seemingly minor consumer choice between confections in vending machines and
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Global Candy Sales | | |Market Share |$ Sales in Millions | |Brand |Company |2011 |2012 |2011 |2012* | |Snickers |Mars Inc |1.7 |1.8 |$3‚286 |$3‚572 | |M&M’s |Mars Inc
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The University of Hong Kong Case Study on WM Wrigley JR.Company. Individual Written Assignment Table of Contents Executive Summary 1 Introduction 2 Analysis of the Issues 2 Porter’s Five Forces Analysis 2 Current Rivalry (yellow zone) 2 Substitute (yellow zone) 3 New Market Entrants (green zone) 3 Supplier (green zone) 4 Customer (red zone) 4 Major Issues 5 Analysis of Options 5 Positioning at medium to high end in sugar confectionery 5 Developing new concepts in sugar
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