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  • October 2012
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Winfield Refuse Management, Inc.: Raising Debt vs. Equity

By: W. Carl Kester and Sunru Yong
  • Format:Print
  • | Language:English
  • | Pages:6
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Abstract

A small, publicly traded company specializing in non-hazardous waste management considers a major acquisition in the Midwestern U.S. The acquisition can provide entry into the region, help the firm compete in a competitive industry, and improve its cost position. The company has a long-standing policy to avoid long term debt and until now has made a series of small acquisitions using only internal financing. The chief financial officer wants the board of directors to reconsider the policy and suggests funding the acquisition through a bond issue. Several company directors disagree and prefer that the firm issue common stock. Students must analyze the costs of issuing either a bond or common stock before making a final recommendation for financing the acquisition.

Keywords

United States; Acquisitions; Capital Structure; Equity Capital; Debt Management; Expansion; Leveraged Buyouts; Financial Analysis; Administrative/Support/Waste Management/Remediation Services; Equity; Borrowing and Debt; Service Industry

Citation

Kester, W. Carl, and Sunru Yong. "Winfield Refuse Management, Inc.: Raising Debt vs. Equity." Harvard Business School Brief Case 913-530, October 2012.
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About The Author

W. Carl Kester

Finance
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Related Work

    • October 2012
    • Faculty Research

    Winfield Refuse Management, Inc.: Raising Debt vs. Equity (Brief Case) (TN)

    By: W. Carl Kester and Sunru Yong
    • October 2012
    • Faculty Research

    Winfield Refuse Management, Inc.: Raising Debt vs. Equity, Spreadsheet for Students (Brief Case) (CW)

    By: W. Carl Kester and Sunru Yong
Related Work
  • Winfield Refuse Management, Inc.: Raising Debt vs. Equity (Brief Case) (TN) By: W. Carl Kester and Sunru Yong
  • Winfield Refuse Management, Inc.: Raising Debt vs. Equity, Spreadsheet for Students (Brief Case) (CW) By: W. Carl Kester and Sunru Yong
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