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  • Questions of Case 4 - Diageo PLC

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    Yun Clare Yang
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    How has Diageo historically managed its capital structure? what is the static tradeoff theory (textbook theory)? Why is Diageo selling Pillsbury and spinning off Burger King? How might value be created through these transactions?

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    Questions of Case 4 -Diageo Plc

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    How has Diageo historically managed its capital structure? what is the static tradeoff theory (textbook theory)? Why is Diageo selling Pillsbury and spinning off Burger King? How might value be created through these transactions?

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    2K views1 page

    Questions of Case 4 - Diageo PLC

    Uploaded by

    Yun Clare Yang
    How has Diageo historically managed its capital structure? what is the static tradeoff theory (textbook theory)? Why is Diageo selling Pillsbury and spinning off Burger King? How might value be created through these transactions?

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    Diageo Plc Questions 1. How has Diageo historically managed its capital structure? 2.

    What is the static tradeoff theory (textbook version)? How would you apply it to Diageos business prior to the sale of Pillsbury and spinoff of Burger King? 3. Why is Diageo selling Pillsbury and spinning off Burger King? How might value be created through these transactions? 4. Based on the results of the model, what recommendation would you make for Diageos future capital structure? Does the model capture all of the important risk factors faced by Diageo? How might you adjust the recommendation from the model to adjust for any missing risk factors?

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