Debt Policy at UST Inc. Submitted By: Group O Manan Chandna (2012PGP068) Mohammad Sohail (2012PGP069) Priyankar Pandit (2012PGP081) Sayar Banerji (2012PGP090) Shruthi Kulkarni (2012PGP093) Shupriya Singh (2012PGP094) V. M. Sai Murali (2012PGP106) Q1) Evaluate the business risks of UST from the viewpoint of a credit analyst / potential bondholder. Conclude by rating the overall business risk of UST The factors that have an impact on the company’s business risk are very high single product
Premium Debt Stock Finance
chewing gum‚ Tutti-Frutti‚ was the first chewing gum that was sold from a vending machine. This first chewing gum vending machine was located in one of the New York City subway stations. • In the year 1891‚ William Wrigley Jr came up with Wrigley Chewing Gum. • In the year 1892‚ Mr. Wrigley got the idea of providing two packages of chewing gum with each can of baking powder. This offer was a huge success. • In the year 1893‚ the first two brands of Wrigley’s were Vassar and Lotta and Wrigley’s Spearmint
Premium World War II Chewing gum
CAPITAL MARKETS AND FINANCING SPR 13 | Group Assignment 1 | UST Case Study | 2/19/2013 | | | | Question 1: In order to calculate the impact of the leverage recapitalization on UST’s value‚ we used the WACC and APV methods to calculate its value before and after the recapitalization. WACC Method Using the WACC method‚ we first derived UST’s return on assets (rA). Since we are given the firm’s market capitalization‚ debt and cash‚ we calculated the current Enterprive Value
Premium Debt Free cash flow Operating cash flow
adult market chewing gum with the brand Xhale-strictly for adults. In the chewing gum based candies‚ the adult segment was pre occupied by the brands like Orbit white‚ Happy Dent and Variants of Central fresh by Wrigley. On the other hand non chewing gum based mint candies like Polo from Wrigley‚ Minto-Fresh from ITC‚ Cloro-Mint‚ Halls and its variants have further increased the options for consumers. The same market forced HLL and Cadbury‚ Parry‚ Candico and Joyco to shrink or move out of the market
Premium Target market Brand Brands
“The Blackstone Group: Merlin Entertainment” The Blackstone group‚ founded in New York‚ is one of the largest private equity firms in the world with offices in USA‚ UK‚ Germany‚ France and India. The Blackstone model of investment operation is to invest out of a singel global equity fund so all its investments around the world tap into the same capital pools. One of the most attractive industries to invest for the Blackstone is theme parks and there are a number of reasons for that. The first
Premium Investment Net present value
Managerial Finance – Problem Review Set – Capital Structure and Leverage 1) If a firm utilizes debt financing‚ an X% decline in earnings before interest and taxes (EBIT) will result in a decline in earnings per share that is larger than X. a. True b. False 2) Firm A has a higher degree of business risk than Firm B. Firm A can offset this by using less financial leverage. Therefore‚ the variability of both firms ’ expected EBITs could
Premium Finance Weighted average cost of capital Financial ratios
APAX PARTNERS AND XERIUM S.A. 1. What tactics/actions did Apax take to enable it to acquire BTRP in an auction without over-paying? How did Apax add value to Xerium? Apax took a well-designed strategy to bid for Xerium. First‚ they understood it was not a competitive auction. Secondly‚ they took advantage of the momentum and circumstances of the seller that was under distress. Finally‚ they spent huge resources to analyze and calculate the value of Xerium to Apax. First‚ they analyzed
Premium Sales Value added Selling
pays no taxes. Northrop plans a leveraged recapitalization‚ in which it will issue $300 million in perpetual debt at an interest rate of 2% per year and use the proceeds to repurchase shares. The firm operates in the Modigliani-Miller world with no taxes. a) What are Northrop’s firm value‚ cost of equity‚ and WACC before the recapitalization? b) What are Northrop’s firm value‚ equity value‚ debt value‚ cost of equity‚ and WACC after the recapitalization? Compare you results to those in a) and
Premium Stock Stock market Finance
Applied Corporate Finance FIN 246A Assignment #8 – Arch Communications & LOLWA ALBOHAMAD Arch Communications Group Inc. Evaluate Arch’s industry and its strategic position vis-avis its major competitors. What does your analysis imply for Arch’s future investment requirements and the company’s ability to earn profits greater than its cost of capital? Arch Communications became the 3rd largest paging company in the US‚ with 3 million subscribers in 1996. The core activities included;
Premium Corporate finance Mergers and acquisitions Finance
Debt Policy at UST Inc. Executive Summary In the 1990’s‚ UST was a dominant producer of moist smokeless tobacco‚ controlling 77% of the market. Smokeless tobacco products consist of snuff (dry and moist) and chewing tobacco (loose leaf‚ plug and twist/roll) categories. UST was a market leader of the snuff product category‚ innovating with new product forms and flavors over the years. UST has also been a profitable company‚ boosting its shareholders’ earnings by undertaking measures such
Free Tobacco