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chrisholmes176
chrisholmes176
26.08.2021 • 
Business

Assume that Blaine Kitchenware CEO Victor Dubinski has made the following share repurchase proposal to Blaine’s board of directors: Blaine will use $209 million of cash from its balance sheet and $50 million in new debt-bearing interest at the rate of 6.75% to repurchase 14.0 million shares at a price of $18.50 per share. You have subsequently been hired as a consultant by the members of Blaine’s board of directors to assess the advantages and disadvantages of this proposal and to provide a recommendation to the board about whether or not to accept this proposal. Write a brief report providing your recommendation, answering the following questions along the way:

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