Blaine Kitchenware, founded in , produces small appliances. Claims just under 10% of the $ billion US small appliance market. BLAINE KITCHENWARE Case Exhibit 1 Operating Results: Revenue , , , Less: Cost of Goods Sold , , The main fix in the case is whether Blaine Kitchenware’s should opt for repurchasing its own shares or not. If Blaine’s Kitchenware repurchases its shares, they.

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We have not been given the seperate data for equity share capital and Retained Earnings. In other words, Blaine does not fully utilize its solutionn. The company has been earning profit and it should seek and endeavor further growth opportunities instead of returning it back to shareholders. This page has approximately words. How would such a buyback affect Blaine? This is not a very healthy situation for a public company as the interest of the minority shareholders are sometimes not taken care of.

If this 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 exact question? Registered Data Controller No: In summary, in order for Blaine to keep its current payout policies, they must reduce numbers of outstanding shares throughout share repurchasing.

There is a big question facing Blaine and that is why would their existing shareholders want to sell their equity back to the company? They also cawe to consider of the effect of the repurchase on various factors like the risks involved in raising a debt kitchenwzre when they are large, very conservative and debt free. Although this will involve the company raising a significant debt, this will also give them complete control to the promoters.


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Tax ID No Just complete our kitchsnware order form and you could have your customised Business work in your email box, in as little as 3 hours. This shows that the company has been keen on less retention of money to further invest. Go to advanced search. Accounting essays Architecture essays Business essays Coursework Economics essays Education essays Engineering essays English language essays English literature essays.

Order a custom essay Print this page Search again Word count: The payout ratio of the company has been increasingly increasing for the past three years. Since they kitchenwxre totally equity financed, there is no tax shield.

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Cost of capital when the company is unlevered Ke Keep up to date with email updates Pricing Shipping options Terms of blaime What’s available from us? Joel Heilprin ; Timothy A Luehrman. It is evident that the cost of capital has reduced when the company decided to go for share repurchase using the surplus cash and debenture issue. Product details Share this page: Essay UK offers professional custom essay writing, dissertation writing and coursework writing service.

My account New to The Case Centre? Seeing the industry debt equity ratio, the company has kept itself unlevered and this was a bit costly as the cost of debenture is fast cheaper if we compare it with the cost of equity. Following is the operating results for the year when the capital structure is levered and unlevered. The management should use the available cash and invest in attractive investments.


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. All fields Reference no. Finance, Accounting and Control.

By continuing to use our kitchrnware you consent to the use of cookies as described in our privacy policy unless you have disabled them. There are UK writers just like me on hand, waiting to help you. Would you be in favor of it as a non-family shareholder? The justification can be drawn from the diminishing returns for the last three years. We are completely closed on Tuesday 1st January.

What are the primary advantages and disadvantages of such a move? Acquirers could pay way less than so,ution originally expect to buy out the firm. The company has been earning less profits and hence it is of the opinion of distributing the profits to shareholders instead of retaining it for further investments.

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Our work is high quality, plagiarism-free and delivered on time. Register Submit to us Case writing resources Case writing scholarships How to submit your case Online case submission Why submit your case to us? Other Income expense 13, 13, Less: Interest 0 Earnings Before Tax 77, 74, Less: