Subject category:
Finance, Accounting and Control
Published by:
Darden Business Publishing
Length: 31 pages
Data source: Generalised experience
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Abstract
This case can be used as a vehicle for exploring capital-structure management and for analyzing the maturity structures of a firm''s capital. The case presents four competing proposals to this large electrical-equipment manufacturer for restructuring its long-term liabilites. The tasks for the student are to evaluate the four proposals on the bases of cost, maturity, flexibility, risk, financial performance, and current capital-market conditions and to recommend which proposal to accept. This case is a natural extension of, or complement to, cases on debt/equity mix and introduces students to numerous practical considerations in capital-structure design.
About
Abstract
This case can be used as a vehicle for exploring capital-structure management and for analyzing the maturity structures of a firm''s capital. The case presents four competing proposals to this large electrical-equipment manufacturer for restructuring its long-term liabilites. The tasks for the student are to evaluate the four proposals on the bases of cost, maturity, flexibility, risk, financial performance, and current capital-market conditions and to recommend which proposal to accept. This case is a natural extension of, or complement to, cases on debt/equity mix and introduces students to numerous practical considerations in capital-structure design.