Issue of equity and debt

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Reference no: EM13827914

Problem:

Case Study: Harvard Business School Brief Case

Case No: 9-913-530, October 22, 2012.

Winfield Refuse Management, Inc.: Raising Debt vs. Equity

By W. Carl Kester and Sunru Yong

Please consider future financial flexibility, risk, earnings and profits, ownership dilution issue, etc. when choosing between debt and equity. Use case information and data. Please read textbook to have an understanding of EBIT/EPS analysis.

1. What are the annual cash flows associated with the bond issues? With the common stock issue?

2. What are the key financial characteristics of Winfield relevant to the issuance of debt? How much debt can the company support?

Additional Information:

This is a case study from the Harvard Business School. Case Study No: 9-913-530. The case is about Winfield Refuse Management, a nonhazardous waste management company. The company desires to purchase another company and needs to raise money. The options open are issue of equity and debt.

Reference no: EM13827914

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