ESCUELA DE ECONOMA

FINANZAS CORPORATIVAS AVANZADAS

PROFESORA: CARMEN LLANQUI CH.

TRABAJO GRUPAL
Especificaciones:
Esta evaluacin deber ser entregada el da 7 de noviembre de 2014. El documento
ser presentado en formato MS-Word impreso; el texto tendr tipo y tamao de letra
Arial 11 con espacio y medio.
Adems, los grupos (todos los integrantes) realizarn una breve presentacin (en no
ms de 20 minutos) de dicho trabajo. Para ello, deber presentar el archivo digital en
MS-Power Point y si es necesario hacer uso del Excel.
Esta presentacin ser realizada el 7 de noviembre en el horario correspondiente al
presente curso.
Toda la parte terica se encuentra en la bibliografa dad por el Profesor Elias Minaya.

PART 1
1.

What is the difference between a stock dividend and a stock split?

2.

Would managers be more likely to repurchase shares if they believe the stock is
under- or over-valued?

PART 2
CASE 1
Maria Suarez returned to her office after spending the afternoon meeting with her firms
investment bankers. Suarez was CFO of Midco Industries, a mid-sized manufacturing
firm, and she was taking a hard look at its capital structure and payout policy. Suarez
felt that Midco was underlevered and potentially not taking full advantage of the tax
benefits of debt. Further complicating matters, Midcos institutional investors had been
clamoring for either a repurchase or a special dividend.
One possibility floated by her investment bankers was a leveraged recap, in which
Midco would issue debt and use the proceeds to repurchase shares. Midco Industries
has 20 million shares outstanding with a market price of $15 per share and no debt.
The firm has had consistently stable earnings and pays a 35% tax rate. Midcos
investment bankers proposed that the firm borrow $100 million on a permanent basis
through a leveraged recap in which it would use the borrowed funds to repurchase
outstanding shares.
As Suarez sat down at her desk, she stared at her notepad. She had written down
several questions that she would need to answer before making her decision.

ESCUELA DE ECONOMA
FINANZAS CORPORATIVAS AVANZADAS
PROFESORA: CARMEN LLANQUI CH.

1.

What are the tax consequences of the recap?

2.

Based only on the tax effects and the Valuation Principle, what will the total
value of the firm be after the recap?
a. How much of the new value will be equity?
b. How much will be debt?

3.

At what price should Midco be able to repurchase its shares?

4.

Who benefits from the recap? Who loses?

5.

What other costs or benefits of the additional leverage should Midcos

managers consider?

6.

If Midcos managers decide to issue the debt and distribute the tax shield as a
special dividend instead of repurchasing shares, what will the dividend per share
be?

PART 3
CASE 2: Blaine Kitchenware
1. Elaborar una breve situacin de la empresa, la industria y de los planes futuros
de la empresa (CAPEX, adquisiciones, estrategia de crecimiento).
2. Evaluar el lado derecho del balance y su composicin. Cul es su posicin de
deuda neta? Considera usted que la estructura actual de capital de Blaine es
ptima? S, no, por qu?
3. Considera usted que la poltica de dividendos de Blaine es apropiada? S, no,
Por qu?
4. Considerar la siguiente propuesta de recompra de acciones para las preguntas
4, 5 y 6: Blaine utilizar USD 209 MM de cash (cash & marketeable securities)
y USD 50 MM de nueva deuda con una tasa de 6.75% para recomprar 14
millones de acciones a un precio de USD 18.5 por accin. Cmo afectara esta
decisin a Blaine? Elaborar EEFF: BG y P&G utilizando EEFF 2006.
Evaluar los impactos sobre EPS, ROE, ratio de Interest Coverage y Debt/Equity
y el WACC de la empresa (todo con los EEFF del ao 2006).
5. Cmo accionista mayoritario de Blaine, estara a favor de la propuesta?
Estara a favor si fuera accionista minoritario?

ESCUELA DE ECONOMA
FINANZAS CORPORATIVAS AVANZADAS
PROFESORA: CARMEN LLANQUI CH.

6. La idea de recompra, genera valor? Y si es as, Por qu podra haber

oposicin a la idea? Qu debera hacer finalmente Dubinski?