| Wrigley Recapitalization Analysis |
| Assumptions | Before Recapitalization | After Recapitalization |
| Interest rate on debt | 0.00% | 13.00% |
| Pre-recap debt | $ - 0 | $ 3,000.00 |
| Tax Rate | 40% | 40% |
| Value of the Interest Tax Shield |
| Tax Rate | 40% | 40% |
| Amount of Debt | $ - 0 | $ 3,000.00 |
| Interest Tax Shield (PVTS) | $0 |
| | Before Recap | After Recap |
| Operating Income (EBIT) | $ 514.00 | $ 514.00 |
| Interest Expense | $ - 0 |
| Taxable Income | $ 514.00 |
| Taxes |
| Net income |
| Shares outstanding | 232.441 |
| Earnings per share |
| | No Debt | Debt |
| Beta | 0.75 |
| Market Value of Equity (No Tax Shield) | $ 13,100.95 |
| Interest Tax Shield | $ - 0 |
| Market Value of Equity (Including Tax Shield) |
| Debt/Equity | - 0 |
| Tax Rate | 40% | 40% |
| Risk Free Rate | 5.65% | 5.65% |
| Market Risk Premium | 7.00% | 7.00% |
| Pre-Tax Cost of Debt | 0% | 13.00% |
| After-Tax Cost of Debt | 0% | 7.80% |
| Cost of Equity |
| Weight of Debt |
| Weight of Equity |
| WACC |
| Shares Outstanding | 232.41 |
| Price Per Share | $ 56.37 |
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wrigley_spreadsheets.xlsx
