Corporate Finance Blaine Kitchenware, assignment help

You have been hired as a consultant to
Victor Dubinski, the CEO of Blaine Kitchenware. 
You are charged with putting together a written report with supporting
numerical analysis that addresses the following items:

1. Is
   the current capital structure and payout policy for Blaine optimal?  Explain and justify your conclusion.  Use numbers whenever possible.

2. Should
   Blaine recommend a large share repurchase to the Board of Directors?  What are the advantages and disadvantages of
   this action?  Again, explain and justify
   your conclusions.  Use numbers whenever
   possible.

3. Consider
   two specific share repurchase proposals:

   1. First Proposal

      1. Blaine will issue $50 million in
         new debt at an interest rate of 6.75%

      2. Blaine will use $209 million of
         cash from its balance sheet

      3. Blaine will use these two sources
         of cash to repurchase 14 million shares at $18.50/share.

Supporting documentation is attached.