Hershey Foods Corporation Essay

Suggested Discussion Questions3. Based on your valuation of HFC, do you feel it was fairly treasured by the market in the first place the promulgation of the sale? Are the NestleCadbury Schweppes and Wrigley bids fair to their own shareholders (i.e., what needs to see in order for these bids to create value for the bidding companies)? I remember that Hersheys Foods Corporation was fairly valued by the market before the announcement of the sale. I conceptualize that many of the shareholders were not happy with the sell because it tied into the community. I think the shareholders knew that it was a good idea because they would deem more money and be able to diversify the company 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 take as they should within the company. In order for these bids to create more value for the bidding companies I believe the company needs to diversify. I think their best option would be stock repurchase. This would allow the to have slight stocks keen and make the company more profitable.Final Case trial run 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 effect 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 record book value and market value of equity (15 points)?3. Would book value and market value weights change as a government issue 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)