Presented financial restructuring proposal

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Reference no: EM132036522

An investment banking firm, Grokster Brothers, has presented a financial restructuring proposal to Victor Dubinski. The family has traditionally opposed debt financing. However, they have agreed to see an independent analysis. Your job as an independent consultant is to analyze this proposal and make a recommendation to the Board.

The proposal is to issue $150 million of bonds at 5% and use $105 million in cash to purchase 15 million shares of stock at $17.00/share.

Not only will you need to create pro forma financial statements and project the effect on valuation but justify your results using basic financial metrics (ratios). Be sure to address concerns expressed by the parties affected by this restructuring.

Reference no: EM132036522

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