Blaine Kitchenware

Week Six: Blaine Kitchenware Discussion

(Need a paragraph for each question.)

1. Do you believe that Blaine's current capital structure and payout policies are appropriate? Why or why not?

2. What are the advantages of having "too little" debt? In other words, if having no debt means a firm's WACC is higher than it would otherwise be, why would they choose such a capital structure?

3. What are the disadvantages of having "too much" debt?