Case Study essay paper

Case Synopsis

This case focuses on the decision of raising debt vs equity to finance an acquisition at Winfield Refuse Management (Winfield). Winfield is a small publicly traded non-hazardous waste management company operating in the Midwest of the US. Winfield was established in 1972 by the Thomas Winfield in Missouri. The Winfield family remains on the board is a significant owners. Winfield is considering the acquisition of Mott-Pliese Integrated Solutions (MPIS), a waste management competitor based in Ohio. The Board has reached agreement to acquire the firm and has reached agreement with MPIS about the price. However, they are having considerable difficulty agreeing on the form of financing for the acquisition. Case Study The case introduces students to the characteristics of debt and equity and presents the key issues relevant to a long-term financing decision.

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( 1. 2. 3. 4. Introduce the definitions and key characteristics of debt and equity in long-term financing. Discuss analytic concepts such as dilution, leverage and debt capacity. Identify the factors relevant to different types of securities in financing a long-term expansion. Interpret an EBIT Case Study chart in order to make a financing decision. )

Learning Objectives

Key questions for consideration

1. What are the characteristics of Winfield relevant to the issuance of debt?

How much debt can Winfield support?

2. How would you respond to each Directors assessment of the financing decision? Consider both strengths and weaknesses of each assessment.Case Study

3. Using the criteria of control, flexibility, income, and risk, how would you evaluate the choice of debt vs. equity in financing the acquisition of MPIS?

4. What is your final recommendation for Winfield financing the acquisition of

MPIS?

Submission (Case 2: Winfield Refuse Management)

· You may discuss in groups but document and submit individually :

· Penalties will apply if we spot collusion

· You must:

· Document the assumptions you have made (if any) that are not in the case

· Show calculations and results as an appendix (not alwaysCase Study

required)

· Depending on your formatting, about 2-3 pages and not more than 3 pages in 1.5 spacing, 12 point font.

· Note: the 3-page limit does not include references and appendices.

Sample Template

Key points facts and problems:

Executive Summary (excluded from word count)

1. What are the problems and the key issues that arise

2. Address the given discussion points or questions

3. Conclusions and recommendations if any Appendix (excluded from word count)  Case Study

Do Not use a Q and A answer format : make this a business type briefing and avoid simply restating what is already in the case

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