Product details

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Compact case
Case
-
Reference no. BAB027
Published by: Babson College
Originally published in: 1996
Version: November 2001
Length: 4 pages
Data source: Published sources

Abstract

This is the second of a two-case series (BAB026 and BAB027) and raises the issue of what would happen to the value of the firm if management issued debt after the initial public offering. It provides an opportunity to discuss weighted average cost of capital, the cost of debt financing, firm value in the presence of debt, and how debt ratings are assigned.
Location:
Industry:
Size:
USD33 million in assets
Other setting(s):
1996

About

Abstract

This is the second of a two-case series (BAB026 and BAB027) and raises the issue of what would happen to the value of the firm if management issued debt after the initial public offering. It provides an opportunity to discuss weighted average cost of capital, the cost of debt financing, firm value in the presence of debt, and how debt ratings are assigned.

Settings

Location:
Industry:
Size:
USD33 million in assets
Other setting(s):
1996

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