33:390:400 Lecture Notes - Lecture 7: Eskimo Pie, Capital Structure
Document Summary
Eskimo pies, one of reynolds"s companies, was generating less than one percent of. For reynolds to be more successful, they wanted to sell eskimo pie to fund other core business plans. Eskimo management wished to choose the ipo over nestle due to. With nestle taking over, eskimos headquarters would be closed down, and the management staff would no longer be needed. This would cause 46 staff members and 18 salary employees to be let go. If eskimo pie decided to take the ipo offer, the capital structure would consist of the million in cash that the company accumulated with an additional loan of 2 million in debt. The 15 million would be used as the dividend, paying out. There would also be secondary shares of 3. 3 million used to cover the loan of 2 million and provide working capital.
