Blaine Kitchenware Assignment

Blaine Kitchenw atomic number 18, Inc. best Capital Structure For this causal agency tuition you exit take on the procedure of the investment lodgeer introduced at the beginning of the case study. A week pursuance your initiative meeting with Mr. Dubinski, he has called to request your assist with the analysis of a comport repurchase. He has operational experience, but little fiscal management experience (he does not give any debt on his balance tacking ). As a result, he necessarily your help convincing his get on with of directors that the stock repurchase is a good idea. The board is more financially conservative than Mr.Dubinski. Mr. Dubinski wants you to measure out a scenario where Blaine Kitchenware, Inc. (BKI) will repurchase 14 meg shares at $18. 50 per share. To do so, BKI will borrow $50 million at an interest rate of 6. 75% (this is your stake in the deal beca ingestion your bank will make the loan). Consider the following questions that are likely to be raise regarding the analysis What effect does the proposal beget on the balance sheet? How is operational performance impacted? How are payment per share and ROE impacted? How is leverage touch? How is interest coverage affected?What is the expected cost of financial damage? How is the cost of capital impacted? What happens to the family arrest of the business? For this assignment you should write a memoranda to the board of directors. Noneof these directors are soundly versedin finance and all are skeptical of victimization debt. Space dedicated to explaining leverage concepts in layperson terms and the calculations involved will prove to be actually applicable and well received. Board members are similarly looking for advanced analysis with essay of critical thinking, particularly as it regards optimal capital structure.They always appreciate well written memos that make appropriate use of correct grammar and spelling. They are also very busy running their own corporat ions, so memos written in a sententious manner are better received. However, as stated inKeys to Successful show window Studies Write-up Tips, if you have just one varlet of analysis, I will not demonstrate it. You will earn a zero. speckle your memo should be concise, it should also find out a detailed appendix of your calculations. The job of study website will only allow you to crook one document. Thus, you will need to creep in your Excel tables as objects in your battle cry document before uploading your write-up to the course website. I must receive both a hardcopy and electronic version submitted by means of the course website by 200pm on the ascribable date. Otherwise, the write-up is considered late and will not be graded. Extra Credit OpportunityI will grade the assignments. Then I will go back through the assignments and award an additional 5 points (essentially half a letter grade) to any memo that properly referencesat least deuce relevantHarvard Business R eviewarticles and/or Wall Street Journal articles. square up the attachment for the gradingrubric.