Blaine Kitchenware Case Study Answers 1. ABOUT THE COMPANY Blain Kitchenware, Inc. (BKI), founded in , is a mid-sized producer of. View Notes – Blaine Kitchenware Case from FIN at DePaul University. Blaine Kitchenware Questions: 1) Do you believe that Blaines current capital structure. ABOUT THE COMPANY. Blain Kitchenware, Inc. (BKI), founded in , is a mid- sized producer of small appliances for residential kitchens. BKI has an.

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If kittchenware essay isn’t quite what you’re looking for, why not order your own custom Business essay, dissertation or piece of coursework that answers your cass question? What are the primary advantages and disadvantages of such a move? Product details Share this page: Keep up to date with email updates Pricing Shipping options Terms of business What’s available from us?

Medicine essays Miscellaneous essays Psychology essays Religious studies essays Science essays Sociology essays Essays menu. There is a big question facing Blaine and that is why would their existing shareholders want to sell their equity back to the company?

Register Submit to us Case writing resources Case writing scholarships How to submit your case Online case submission Why submit your case to us? Acquirers could pay way casw than they originally expect to buy out the firm. Access this item You must be logged in to access preview copies. Since they are totally equity financed, there is no tax shield. Following is the operating results for the year when the capital structure is kitchenwarre and unlevered.

Each of us is qualified to a high level in our area of expertise, and we can write you a fully researched, fully referenced complete original answer to your essay question. The Case Centre is a not-for-profit company limited by guarantee, registered in Cse No and entered in the Register of Charities No They also have to consider of the effect of the repurchase on various factors like the risks involved in raising a debt especially when they are large, very conservative and debt free.


However, concluding whether an unlevered or a levered capital structure is appropriate for studj company largely depends on the industry debt equity ratio i. About this item Settings Related products Abstract A diversified mid-sized manufacturer of kitchen tools contemplates a stock repurchase in response to an unsolicited takeover.

Accounting essays Architecture essays Business essays Coursework Economics essays Education essays Engineering essays English language essays English literature essays. The debt capital has nlaine procured at very less cost when compared to equity and hence the WACC has reduced from The Case Centre is dedicated to advancing the case method worldwide, sharing knowledge, wisdom and experience to inspire and transform business education across the globe.

Other Income expense 13, 13, Less: Essay UK offers professional custom essay writing, dissertation writing and coursework writing service.

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Using a perfect leverage is always beneficial for a company as it allows to decrease the cost of capital. Seeing the industry debt equity ratio, the company has kept itself unlevered stucy this was a bit costly as the cost of debenture is fast cheaper if we compare it with the cost of equity.

The payout ratio of the company has been increasingly increasing for the past three years. Although investors take dividend as an indicator for a company to succeed, they also expect dividend will be paid continuously at either stable or growing rate.

View our pricing guide or login to see prices. Their management will have increased stakes, this will reduce their chance of being acquired and this will provide more dividends to their remaining shareholders. The return on equity sstudy increase which will aid the family in better realizing value for their stake. My account New to The Case Centre?


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We have not been given the seperate data for equity share capital and Retained Earnings. There are UK writers just like me on hand, waiting to help you.

Another scenario is to completely buy-back the market float. About this resource This Business essay was submitted to us by a student in order to help you with your studies. blanie

Tax ID No All fields Reference no. Debt being a cheap source of finance and given the industry standards confirming the availability of the debt as well as the conformity by the rivals in subscribing to the debt capital, it seems wise to have a levered capital structure instead of having a completely unlevered one as it would have affected the cost of capital of bpaine company. Buyback of the shares using the surplus cash and issuing debentures is beneficial for the company as it will give some degree of leverage to the company.

Dividend payout ratio 0.

Blaine Kitchenware, Inc: Capital Structure | The Case Centre, for educators

Blaine has an unlevered capital structure currently i. Go to advanced search. Our work is high quality, plagiarism-free and delivered on time.

This is not a very healthy situation for a public company as the interest of the minority shareholders are sometimes not taken care of.

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