Wirgely Gums

Case 2. Corporate Finance: Management of the Corporate Capital Structure

Main case:

The Wm. Wrigley Jr. Company: Capital Structure, Valuation, and Cost of Capital (in Bruner 5th ed case 30, 6th ed case 34)

Supporting information:

An Introduction to Debt Policy and Value (in Bruner 5th ed; case 28, 6th ed 31)

Structuring Corporate Financial Policy: Diagnosis of Problems and Evaluation of Strategies. (in Bruner 5th ed case 29, 6th ed 32)

(Notice! The cases have different numbers in different editions of the case book. Choose the cases with the correct titles, see above)

Each work group has to hand in a final report and to present their results at a seminar.

The case must be handed in NO LATER THAN 15.00 the day before the presentation. Leave it in Wiviann Hall’s mailbox (D6) or in the mailbox outside the glass door (D6).

Please note that standard reference systems shall be used and that references shall be presented in a literature list.

At each seminar approximately 5 work groups will be included (according to your registration for a seminar). Sign up on the notice board at D6. Each group must be prepared to present all of their reports. The teacher may however choose to limit the presentations to specific topics. Check the group list to see how many teams there are to share the time for full presentations.

Grading: The seminar is mandatory and for anyone not present the total score will be reduced by 25% of the maximum number of points.

Assignments for the Wm. Wrigley Jr. Company case.

With the description as background, formulate the problem concerning the Wm. Wrigley Jr. Company. Analyse the situation and find a feasible solutions to the problem, evaluate and make well motivated recommendations.

You are expected to use the framework of the introductory cases “An Introduction to Debt Policy and Value” and “Structuring Corporate Financial Policy: Diagnosis of Problems and Evaluation of Strategies” explicitly (with motivated...