Task:
1.What do you think Blanka Dobrynin is trying to achieve through her active investor strategy?
2.What will be the effects of issuing $3 billion of new debt and using the proceeds to either pay a dividend or re-purchase shares on:
a.Wrigley’s outstanding shares;
b.Wrigley’s book value of equity;
c.The price per share of Wrigley’s stock;
d.Earnings per share;
e.Debt interest coverage ratios and financial flexibility;
f.Voting control by the Wrigley family;
3.What is Wrigley’s current WACC structure and what would you expect to Wrigley’s WACC if it issues $3 billion of new debt and using the proceeds to either pay a dividend or re-purchase shares?
4.Do you recommend that Blanka Dobrynin issue $3 billion of new debt and using the proceeds to either pay a dividend or re-purchase shares?
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