Sealed Air Question Guide

This essay has been submitted by a student. This is not an example of the work written by professional essay writers.

Subject:
Published:
23 February 2016

Remember! This is just a sample.

You can get your custom paper by one of our expert writers.

Get custom essay

90 writers online

Capital structure and risk management

Case study #4: Sealed Air Corporation
The following questions refer to Sealed Air Leveraged Recapitalization (A) case (Harvard case #9‐294‐ 122), and they are meant to guide your analysis of this case. Please make sure your case write‐up addresses all of the questions. Your write‐up should be 4‐6 pages, plus exhibits (such as worksheets). It is due at the beginning of class on April 8th, 2014.

Suggested readings that may enhance your understanding of this case are:

Chapter 14 on Distributions to Shareholders in Brigham and Ehrhardt, Financial Management: Theory and Practice
Chapter 15 on Capital Structure Decisions in Brigham and Ehrhardt, Financial Management: Theory and Practice.
“Agency costs of free cash flow, corporate finance and takeovers”, Michael C. Jensen, American Economic Review, 76, 323‐329, 1986.

1. Why did Sealed Air undertake a leveraged recapitalization? Do you think that it was a good idea? For whom?

2. How much value was created? Where did it come from?
3. Is pursuing a program of manufacturing excellence such as World Class Manufacturing (WCM) inconsistent with “levering up”?

4. Why did Dermot Dunphy, the CEO, feel it was necessary to change the company’s priorities and incentive structure following the recap?

5. Why did Sealed Air’s investor base turnover completely after the recap?

Cite this page

Sealed Air Question Guide. (23 February 2016). Retrieved from https://studyscroll.com/sealed-air-question-guide-essay

"Sealed Air Question Guide" StudyScroll, 23 February 2016, https://studyscroll.com/sealed-air-question-guide-essay

StudyScroll. (2016). Sealed Air Question Guide [Online]. Available at: https://studyscroll.com/sealed-air-question-guide-essay [Accessed: 9 December, 2022]

"Sealed Air Question Guide" StudyScroll, Feb 23, 2016. Accessed Dec 9, 2022. https://studyscroll.com/sealed-air-question-guide-essay

"Sealed Air Question Guide" StudyScroll, Feb 23, 2016. https://studyscroll.com/sealed-air-question-guide-essay

"Sealed Air Question Guide" StudyScroll, 23-Feb-2016. [Online]. Available: https://studyscroll.com/sealed-air-question-guide-essay. [Accessed: 9-Dec-2022]

StudyScroll. (2016). Sealed Air Question Guide. [Online]. Available at: https://studyscroll.com/sealed-air-question-guide-essay [Accessed: 9-Dec-2022]

Don't use plagiarized sources. Get your custom essay..

get custom paper

We use cookies to personalyze your web-site experience. By continuing we’ll assume you board with our cookie policy.