...9902224, 9081683, 9678513, 9253262 Financial Analysis Spring 2014 William Wrigley Jr. Company: Efficiently Financed or Financially Conservative? Introduction Blanka Dobrynin, a managing partner of Aurora Borealis LLC, is considering a potential investment in William Wrigley Jr. Company. Aurora Borealis LLC typically focuses on distressed companies that are in need of restructuring. Ms. Dobrynin believes that if Wrigley were to take on debt, it could create significant new value for the company. Ms. Dobrynin and her associate, Ms. Susan Chandler, have concluded that Wrigley could take on $3 billion in debt, assuming a credit rating between BB and B, at a yield of 13%; Ms. Chandler remains undecided on whether or not to suggest this $3 billion be used to pay an equivalent dividend or to repurchase an equivalent value of shares. Although leveraging a firm can create value, a detailed analysis is necessary to determine if doing so is the right path for Wrigley. The following analysis will evaluate the assumptions made by Ms. Dobrynin and her associate, examine Wrigley’s financial position under each alternative option, and provide suggested recommendations for Ms. Chandler to present to Wrigley’s board of directors. Key Issues Debt Rating: Ms. Chandler’s estimations regarding Wrigley’s credit rating may not be entirely accurate; therefore, the debt rating in which Wrigley should be categorized may not be BB/B. Each of the factors in Standard &...
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...WM Wrigley Jr. Company Group #2 Statement of the Problem: The William Wrigley Jr. Company was the world’s largest manufacture and distributor of chewing gum. They are an industry standard for international candy manufacturing and are competitive key players in the global market. William Wrigley Jr. originally founded the William Wrigley Jr. Company in Delaware as a partnership in 1891; it then became a corporation in 1903 based out of Illinois. The Wrigley’s company has been family ran up until recently when William D. Perez became president, CEO, and director. As of today, William Wrigley Jr. Co. corporate headquarters is located in Chicago, Illinois. Wrigley’s original two brands were Juicy Fruit and Wrigley’s Spearmint. These two brands are now a subsidy of the Mars Incorporated. Wrigley has since expanded, and it now owns a bunch of other brands, including Doublemint, Big Red, Winterfresh, Extra, Freedent, Hubba Bubba, Orbit, and Excel. Along with chewing gum, Wrigley’s offers mints, breath strips, and candies. Altoids, Crème Savers, Life Savers, and Velamints are some brands under Wrigley’s that offer these products. The company has done a good job of diversifying the amount of products that they manufacture. The Wm. Wrigley Jr. Company is a publically traded company in the New York Stock Exchange under the symbol, WWY As of 2006, Wrigley’s distributes to over 180 countries and has 15,800 employees worldwide (company website). The company manufactures...
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...ACF The William Wrigley Jr. Company Group2 Ahsan Rashid Qazi 17110206 Sardar Noman Salim 17110210 M.Hasnain Shabbir 17110210 Jahanzaib Shoukat 17110286 Primary problems: This case is about The Wm.Wrigley Jr. Company, which has to incorporate debt into its capital structure and then decide between two alternatives of whether to Repurchase Share or to pay Dividend. In the wake of introduction of new products and foreign expansion, firm has to raise capital as suggested in the case of $3 billion debt, which will influence the Wm. Wrigley Jr. ‘s outstanding shares, shall it repurchase them or pay dividend to its shareholders. It also has to see the impact of this debt on the share price, the voting control of the Wrigley company, impact on EPS. Analysis: Impact on Share Price Before taking the debt the share price of the company was $56.37 with 232.44 million shares outstanding and a market value of 13.103 billion. After taking the debt of 3 billion, the market value increase by the amount of tax shield provided by debt i.e. $1.2 billion and the share price increases to $61.53. Impact on WACC The pre-capitalization WACC is 10.90% using beta= 0.75, Rf=5.65%, Risk Premium=7% The post capitalization WACC is 10.908% using Levered Beta = 0.87, Re= 11.74%, Rd=13% Impact on Voting Control Share repurchases results in less number of shares outstanding which increases the voting power of the Wrigley Family from 47% to 51%. Impact on EPS Before Recapitalization |...
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...TABLE OF CONTENT PART A 1.0 INTRODUCTION2 1.1 What is the company? 1.2 Products and Brands 1.3 Targeted Consumers 1.4 Reasons of Choosing The Product PART B 2.0 CONSUMER PSYCHOLOGY FACTOR5 2.1 Consumer Individual Factor 2.2 Motivation and Goals 2.3 Brand Personality 2.4 Consumer Imaginery PART C 3.0 MESSAGE APPEALS17 PART D : SUGGESTIONS ……………………………………………………………………20 PART E : CONCLUSION …………………………………………………………………….21 1.0 INTRODUCTION 5 Gums is a brand of sugar-free chewing gum that is manufactured by the Wrigley Company. The name "5" hints at the five human senses with the ad slogan "Stimulate Your Senses" and "Everybody Experiences it Differently”. 5 gum was introduced to United States markets in March 2007, in Canada in January 2008, in Russia, Europe and Australia in 2009, in China, India, Italy, Israel, Thailand, and Malaysia in 2010 . As what had been mentioned earlier, 5 Gums is a chewing gum brand which was established in Malaysia since 2010. The sophisticated element carried by the company had made many Malaysian really eager on what is exactly 5 Gums is all about plus the pro and con. 1.1 What is the company? Wrigley Company is the one which is responsible in creating this 5 Gums all over the world and was established by William Wrigley Jr. Wrigley is a recognized leader in confections with a wide range of product offerings including gum, mints, hard and chewy candies, and lollipops. With operations in approximately 50...
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...[pic] Ex Fide Ad Veritatem THE EFFECTS OF GUM CHEWING ON THE MATH TEST SCORES OF FIRST YEAR PSYCHOLOGY STUDENTS OF HOLY CROSS OF DAVAO COLLEGE A Research Proposal Presented to the Psychology Program In Partial Fulfillment of the Requirements for the Subject Experimental Psychology by Riomhel C. Digal Aileen M. Mendez Kristine Jean N. Ancheta Jhelyn R. Tapere March, 2011 Ex Fide Ad Veritatem The Effects of Gum Chewing on the Math Test Scores of First Year Psychology Students of Holy Cross of Davao College ___________________ A Research Proposal Presented to the Psychology Program ____________________ In Partial Fulfillment of the Requirements for the Subject Psy 8 Experimental Psychology ____________________ by Riomhel C. Digal Aileen M. Mendez Kristine Jean N. Ancheta Jhelyn R. Tapere March, 2011 APPROVAL SHEET This research paper is entitled, “THE EFFECTS OF GUM CHEWING ON THE MATH TEST SCORES OF FIRST YEAR PSYCHOLOGY STUDENTS OF HOLY CROSS OF DAVAO COLLEGE”, prepared and submitted by Riomhel C. Digal, Aileen M. Mendez, Kristine Jean N. Ancheta and Jhelyn R. Tapere, in partial fulfillment for the subject Psychology 8 (Experimental Psychology), has been examined and recommended for presentation and acceptance. Anne Bella L. Pedrosa, MASCo Instructor PANEL OF EXAMINERS Accepted and approved after the presentation of the study with a grade of ___________. Date: April 2011 Gina R. Lamzon...
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...hula dancer who is front and center on the page with only a small portion of beach and ocean behind her. All seems well so far, right? Well, everything would be fine or at least acceptable if things were not so bizarre. The thing that struck me as a little out of the ordinary was that she was not wearing a real bikini top or even a coconut brassiere. The thing that makes this ad so degrading towards women is the fact that this beautiful young lady is wearing two packs of Orbit gum tied to string to cover up her breasts. That is not all. On top of the insult that they would exploit a woman’s breasts to sell chewing gum, they make a poor attempt at witty-humor as well. This is because the flavor of the chewing gum that Orbit and the Wm Wrigley Jr. Company are advertising is “NEW! Orbit Maui Melon Mint”. This is particularly...
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...Company profile Wrigley เป็นบริษัทผู้ผลิตและจัดจำหน่ายหมากฝรั่งที่ใหญ่ที่สุดในโลก โดยที่อุตสาหกรรมอาหารและลูกกวาดนั้นมีการแข่งขันสูง และมักจะถูกปกครองโดยบริษัทใหญ่ๆ ทางบริษัทมีมูลค่าตลาดของหุ้นสามัญมูลค่าประมาณ 13.1 พันล้านดอลล่าร์สหรัฐ ประมาณการผลกระทบจากการปรับโครงสร้างหนี้ การปรับโครงสร้างหนี้ บริษัท Wrigley จะกู้ยืมหนี้สิน 3 พันล้านดอลล่าร์สหรัฐเพื่อใช้ในการจ่ายเงินปันผล หรือเพื่อใช้ในการซื้อคืนหุ้น Susan Chandler รู้ดีว่าสิ่งที่เกิดขึ้นนี้จะมีผลกระทบต่อราคาหุ้น ต้นทุนของเงินทุน การชำระหนี้สิน กำไรต่อหุ้น และการควบคุมการออกเสียง เธอจึงทำการประเมินผลกระทบในสิ่งเหล่านี้ ด้วยการใช้ข้อมูลทางการเงินของบริษัท Wrigley และบริษัทอื่นๆในอุตสาหกรรมเดียวกัน ผลกระทบต่อมูลค่าหุ้น Susan Chandler รู้ว่าการปรับโครงสร้างหนี้ของบริษัทสามารถคำนวณได้จากสมการค่าเงินตามเวลา และพบว่าหนี้สินจะเพิ่มมูลค่าของบริษัทเนื่องจากการจ่ายดอกเบี้ยจ่าย จะทำให้บริษัทจ่ายภาษีน้อยลง ซึ่งปริมาณเงินภาษีที่ลดลงคิดกลับมาเป็นมูลค่าปัจจุบันแล้ว จะเพิ่มมูลค่าให้กับบริษัทที่ไม่ได้กู้ยืมหนี้สิน โดย Susan Chandler คำนวณภาษีจากผลรวมของภาษีท้องถิ่น มลรัฐ และประเทศ รวมแล้ว 40% ผลกระทบต่อระดับของหนี้ หลังจากการกู้ยืมหนี้สิน 3 พันล้านดอลล่าร์สหรัฐ บริษัทจะสามารถจ่ายรายจ่ายที่จะตามมาจากการกู้ยืมได้หรือไม่ Blanka Dobrynin แนะนำให้ Susan Chandler สมมติว่าบริษัทออกตราสารหนี้เรทติ้ง BB และ B และจากข้อมูลอัตราส่วนทางการเงินที่สืบค้นมาได้ (ภาพ 6) Blanka Dobrynin คาดว่าต้นทุนของตราสารหนี้อยู่ที่13% และ Susan Chandler จะต้องตรวจสอบสมมติฐานของข้อมูลในตลาดทุน (ภาพ 7) ผลกระทบต่อต้นทุนของเงินทุน Susan Chandler รู้ว่ามูลค่าของบริษัทจะเพิ่มขึ้นสูงสุดเมื่อ...
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...Ethel’s Chocolate Lounges 1 Ethel’s Chocolate Lounges Jose Echavarria Strayer University Professor Phil Campos Marketing 100 Ethel’s Chocolate Lounges 2 Ethel is owned by Mars Incorporated and was named after his mother. Mars opened Ethel’s chocolate lounges in the Lincoln Park neighborhood of Chicago in April of 2005. Mars organization may prove to be a very excellent marketing strategy to boost the sales of chocolate. The Lounge will cater to the female and male consumer. The male gender will be in search of sweet treats for their wives and girlfriends for special events. Male gender will visit the shop to make a purchase for somebody special. Describe the type of consumer buying decision that best describes the choice to indulge at Ethel’s . The Mars brand is very popular and has produced familiar products for alot of years. M&M’s is a Mars chocolate that is well known and well liked by many around the world. . However, it's the extensive decision that will support the chocolate lounge. Interested constomers will take there time to research the new product in order to make an informed decision. Ethel’s Chocolate Lounges 3 Discuss the factors that influence a consumer to spend money and time at Ethel’s. There are several factors that would influence a consumer to spend money and time at Ethel’s Chocolate Lounge; they include environment, type of product, and exclusivity. The first factor is the attractiveness of the lounge with the over-stuffed...
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...initiatives and are discussed as well as the sales laws needed to be considered. Recommendations are made to help the company minimize threats of lawsuits. Frank C. Mars began making candies in his Tacoma, Washington, kitchen in 1911 and established the company’s first roots in the confectionary business. In the 1920s, his son, Forrest E. Mars Sr., joined his father in business and together they launched the now world famous Milky Way bar. In 1932 Forrest Sr. moved to the United Kingdom where he founded his own company with a dream of building a business model based on his philosophy of a “mutuality of benefits for all stakeholders”. This vision serves as the foundation of the Mars Incorporated we know today. Mars, Incorporated is a private, family-owned company and employs more than 65,000 associates at over 230 sites, including 135 factories, in 71 countries worldwide. Headquartered in McLean, Virginia, U.S.A., Mars Incorporated is one of the world’s largest food companies, generating global revenues of more than $30 billion annually and operating in six business segments: Chocolate, Petcare, Wrigley Gum and Confections, Food, Drinks, and Symbioscience. These segments produce some of the world’s leading brands: Chocolate – M&M’S, Snickers, Dove, Galaxy, Mars, Milky Way and Twix; Petcare – Pedigree, Whiskas, Sheba, Cesar and Royal Canin; Wrigley – Orbit, Extra, Starburst, Doublemint and Skittles; Food – Uncle Ben’s, Dolmio, Ebly, Masterfoods and Seeds of Change;...
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...questions. Figures in brackets printed down the right-hand side of pages indicate the marks awarded to each question or part question. ADVICE TO CANDIDATES You are advised to take account of the marks for each question in allocating the available examination time. This is a synoptic paper in which you are expected to demonstrate your understanding of the connections between the different elements of Business Studies. 4433 A2T21 Read the information below and answer the questions that follow. The Wrigley Company Ltd 1 The vision of the Wrigley Company is to have “Wrigley brands woven into the fabric of everyday life around the world”. In 1970 the company relocated its UK factory and head office to a 45 acre site in Plymouth in the South West of England. Over 600 staff are currently employed there. The factory’s continuous investment in the latest production technology ensures the business’ ability to innovate and maintain its global competitiveness. Wrigley markets its famous brands worldwide. Two of these brands – Wrigley’s Spearmint and Juicy Fruit – have been in existence for more than a century. Other brands include Doublemint, Life Savers, Big Red, Boomer, Pim Pom, Winterfresh, Extra, Freedent, Hubba Bubba, Orbit, Excel, Creme Savers, Eclipse, Airwaves, Alpine, Solano, Sugus, Cool Air, and...
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...distance now between them, it shows us something new. Now we see that Juan is drawing or writing on the Extra gum wrappers that Sarah gives him. Then when Juan visits Sarah in the city, Sarah is going to meet him. Sarah walks into a art gallery to find dozens of gum wrappers with pictures of each of the big moments in their relationship drawn on them. It appears that each time she offered him some gum, like the way they met, Juan would draw that moment on the gum wrapper and keep it. As Sarah is getting touched by the sediment, she comes upon a drawing of Juan proposing to her. In her surprise she turns around to find Juan on one knee with a ring. This moment seems to complete Sarah and Juan’s love story. This commercial is wrapped up with a Wrigley slogan, “give Extra, get Extra”. This commercial is seen on TV rather often. Most times that I have encountered it is during the day or early evening. Most commonly seen on stations that play movies or dramatic TV shows. This is obviously...
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...MGT 380 WEEK 5 DQ 1&2 A+ Graded Tutorial Available At: http://hwsoloutions.com/?product=mgt-380-week-5-dq-12 Visit Our website: http://hwsoloutions.com/ Product Description MGT 380 Week 5 DQ 1&2, 1– Three team leadership concepts that can be learned from the Wrigley company are team leadership capacity, Tuckman and Jensen’s classic leadership model, and organizational change. Our textbook states that, “Teams can be led by a formal leader or through a particular division of labor across team members. This distribution of leadership responsibilities is called team leadership capacity (Day, Gronn, & Salas, 2004), with capacity referring to the potential for such leadership to fulfill those responsibilities,”(Weiss, 2011, p.179). Bill Wrigley Jr. II and Bill Perez shared responsibilities at Wrigley. According to An Introduction to Leadership, “Perez managed the day-to-day operations and finances, while Wrigley focused on long-term strategy and culture,” (Weiss, 2011, p.179). Both took equal responsibility for the company tasks. The two together were able to accomplish more than they would have been able to separately. In other words, they exhibited synergy (Weiss, 2011). 2—- Using Kotter’s eight-step change theory can improve the process of change in an organization dramatically. In this discussion I have chosen three of the eight steps to explain and provide examples of. The first step I will discuss is Stage 1: Create Urgency. This stage encourages leaders...
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...Wm. Wrigley Company Case Analysis Adrienne Johnson, Ramona Rhodes, Makpal Shotbassova Webster University FINC 5880: Corporate Finance FALL I TERM September 10, 2014 Author Note Certificate of Authorship: This paper was prepared by me for this specific course and is not a result of plagiarism or self-plagiarism. I have cited all sources from which I used data, ideas, or words either quoted or paraphrased. Introduction Blanka Dobryn is a managing partner of Aurora Borealis LLC. This hedge funds goal is to acquire a large stake in the Wrigley Jr Corporation. Once this happens then Aurora borealis LLC will encourage WM Wrigley Jr to reorganize the capital structure. The Wrigley Company at this point does not have any debt. Dobryn, is thinking that they can make this company more valuable if they raise their debt and use that money to either pay dividends or repurchase their stocks. (Brunner, 2010) Our job today is to find out the best way to go about restructuring the company using different financial strategies that will put the company at minimal risk. Effects of using debt to recapitalized In researching options, there are a few things that should be considered. Assuming that everything will be positive, there are great benefits to restructuring. The EPS would increase because there would be less shares outstanding after the buyback. The market would look favorable upon that, thus increasing the share price. If Wrigley is able to borrow at a lower rate...
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..............2 1.1 What is the company? 1.2 Products and Brands 1.3 Targeted Consumers 1.4 Reasons of Choosing The Product PART B 2.0 CONSUMER PSYCHOLOGY FACTOR .............................................................5 2.1 Consumer Individual Factor 2.2 Motivation and Goals 2.3 Brand Personality 2.4 Consumer Imaginery PART C 3.0 MESSAGE APPEALS ...........................................................................................17 PART D : SUGGESTIONS ……………………………………………………………………20 PART E : CONCLUSION …………………………………………………………………….21 1 1 CONSUMER BEHAVOR BPMM3013 1.0 INTRODUCTION 5 Gums is a brand of sugar-free chewing gum that is manufactured by the Wrigley Company. The name "5" hints at the five human senses with the ad slogan "Stimulate Your Senses" and "Everybody Experiences it Differently”. 5 gum was introduced to United States markets in March 2007, in Canada in January 2008, in Russia, Europe and Australia in 2009, in China, India, Italy, Israel, Thailand, and Malaysia in 2010 . As what had been mentioned earlier, 5 Gums is a chewing gum brand which was established in Malaysia since 2010. The sophisticated element carried by the company had made many Malaysian really eager on what is exactly 5 Gums is all about plus the pro and con. 1.1 What is the company? Wrigley Company is the one which is responsible in creating this 5 Gums all over the world and was established by William Wrigley Jr. Wrigley is a recognized leader in confections...
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...Table of Content Topic Pg number Company Background 2 Determinants of Creativity 3-4 Three Advertisement 5-7 Reference 8 Introduction Company Background The Nike Explore Team Sport Research Lab is rationally and physically at the heart of the NIKE, Inc. World Headquarters in Beaverton, Ore. It started as a little lab in Exeter, N.H. over 30 years prior, and has developed into a world-class research office tackling devoted mental ability and condition of-the-science research hardware unequaled in the wearing merchandise industry. Carrying on the customs of Nike's unique game specialist Bill Bowerman the lab keeps on deliverring demonstrated experimental bits of knowledge that help drive execution developments over the Nike brand. Today, the lab utilizes more than 40 scientists, a large number of whom hold doctorates or graduate degrees in an extensive variety of investigative orders including biomechanics, physiology, biomedical building, mechanical designing, physical science, math, kinesiology and frameworks...
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