Hershey Foods Corporation Essay

Suggested Discussion Questions3. Based on your rating of HFC, do you feel it was carnivally cherished by the food grocery store forward the proclamation of the sale? Are the NestleCadbury Schweppes and Wrigley bids fair to their own sh atomic number 18holders (i.e., what involve to happen in guild for these bids to create cling to for the tender companies)? I believe that Hersheys Foods stack was fairly pass judgmentd by the market before the announcement of the sale. I think that many of the shareholders were not happy with the merchandising because it tied into the community. I think the shareholders k reinvigorated that it was a good idea because they would make to a greater extent money and be able to branch out the guild from their sale. I do not think that Nestle-Cadbury Scweppes and Wrigley bids are fare to their shareholders because I do not think that they are getting as much give voice as they should within the company. In order for these bids to create more value for the program line companies I believe the company needs to diversify. I think their best alternative would be stock salvation. This would allow the to start less stocks cracking and make the company more profitable.Final Case trial Questions1. What is the nature of Wrigleys business? Is this a healthy, growing company? What would a major recapitalization of Wrigley signal to investors? (15 points)2. What will be the deed of issuing $3 billion in new debt and using the proceeds to repurchase shares on(a)Wrigleys market value per share? (15points) (b)Wrigleys number of outstanding shares (15 points)? (c)Wrigleys book value and market value of equity (15 points)?3. Would book value and market value weights change as a result of the recapitalization? (10 points)4. What is Wrigleys WACC before the repurchase? (15 points)5. What will be the new WACC if the repurchase is undertaken? (15 points)