Assume a 38% tax rate and a 10% discount rate when discounting future dividends. Assume that the new debt is constant and perpetual and that the

 

Assume a 38% tax rate and a 10% discount rate when discounting future dividends.

Assume that the new debt is constant and perpetual and that the buyback operation

is unexpected by stock market participants.

1) What are the primary business risks of UST? Evaluate them from the point of

view of a bondholder.

2) Why is UST considering a leveraged recapitalization after such a long history

of conservative debt policy?

3) Should UST undertake the $1bn recapitalization? Prepare a pro-forma

income statement for 1999 to analyze whether UST will be able to make

interest rate payments. How sensitive is your conclusion to the rating UST

bonds receive?

 geometry dash lite  

Share This Post

Email
WhatsApp
Facebook
Twitter
LinkedIn
Pinterest
Reddit

Order a Similar Paper and get 15% Discount on your First Order

Related Questions

see attachedMBA 560 – FINANCIAL STATEMENT ANALYSIS RUBRICName:Date Completed:Students will complete the assignment with attention to the

see attached MBA 560 – FINANCIAL STATEMENT ANALYSIS RUBRIC Name: Date Completed: Students will complete the assignment with attention to the criteria below. GRADE: Exceptional Proficient Basic Insufficient /Missing/Late Company Selection Minus 10 points if late Financial Statements Minus 10 points if late Company/Industry Section Horizontal Analysis 3 accounts/line items

Create an 8–12-slide PowerPoint presentation that summarizes the AFI Framework and the results of the internal and external analyses. Your presentation

Create an 8–12-slide PowerPoint presentation that summarizes the AFI Framework and the results of the internal and external analyses. Your presentation must also include a SWOT matrix for the company and your recommendations for strategies to move the company forward that align with organizational structure and governance, and reflect ethical