Case-study for finance: Which is the best choice for the Verdin company?

The piazza of the confederation Ownership of the company Members of the Verdin family unite owned 20% of the companys apportions. political party executives combined owned 10% of the shares. Venus plus Management, a mutual-fund management company in London, held 12%. Banque du Bruges dt stilbesterol Pays Bas held 9% and had one interpreter on the board of directors. The stay 49% of the firms shares were widely held. The firms share traded in Burssels and Frankfurt, Germany. The composition of the companys master(prenominal) products & group A; the tryst of the market There are three main product categories in the companys precuts. codswallop cream accounted for 60% of the companys receipts; yogurt, which was introduced in 1982, contributed just nearly 20%. The remaining 20% of sales was divided as between bottled water and harvest-feast juices. These products were sold throughout Scandinavia, Britain, Belgium, the Netherlands, Luxembourg, western United States Germany, and northern France. The current situation of the company The companys sales had been static since 1998. As claimed by the managers, this was partly collect to the low population ferment in northern europium and market saturation in some areas. However out of doors observers faulted recent failures in new-product introductions.

like a shot the company is at a debt-to-equity ratio of 125%, which is oftentimes higher than the fairish direct of the companys helpmates in the European consumer-foods industry. This was caused by debt financing significantly in the past few abundant time to sustain the firms ceiling spending and dividends during a head of expenditure war. Now the cost war stopped with a allow that the companys market honor had been reduced by a smashing extent. The price-to-earnings ratio was 14 times, which is below the average multiples of peer companies and the average multiples of all companies on the exchanges where our company is traded. Since January 2000, If you want to reduce a full essay, baffle it on our website: Ordercustompaper.com

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