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For this project, please use Excel to do your calculations and analysis and then type a report in MS Word. Your report should clearly and thoroughly answer the eight questions below. The report should be typed double-spaced using a Times New Roman Font, size 12. Please limit your report to no more than 10 pages. Submit your report and Excel file on Blackboard, as well as provide me a hard copy of your report in class. All of this needs to be completed by the listed due date on the syllabus. 1) What will be the effects of issuing $3 billion of new debt and using the proceeds to repurchase shares on: Wrigley’s outstanding shares? on the price per share of Wrigley’s stock? 2) What will be the effects of issuing $3 billion of new debt and using the proceeds to pay a dividend on: Wrigley’s outstanding shares? on the price per share of Wrigley’s stock? 3) What is Wrigley’s current (pre-recapitalization) wei

ghted average cost of capital (WACC)? 4) What would you expect to happen to Wrigley’s WACC if it issued $3 billion in debt and used the proceeds to pay a dividend or to repurchase shares? 5) What will be Wrigley’s current EPS (pre-recapitalization) given the following operating incomes? Assume the following numbers are in millions. Operating income (EBIT) -$86 $214 $514 $814 $1,114 $1,414 $1,714 6) What would you expect to happen to Wrigley’s EPS if it issued $3 billion in debt and: used the proceeds to pay a dividend? used the proceeds to repurchase shares? Calculate the potential EPS’s given the following incomes. Assume the numbers are in millions. Operating income (EBIT) -$86 $214 $514 $814 $1,114 $1,414 $1,714 Finally, what can you conclude regarding the re-capitalization strategies? Do you recommend Wrigley to pay a dividend or repurchase shares. Used data or graphs to support your recommendation.