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

The situation of the confederacy Ownership of the telephoner Members of the Verdin family have possess 20% of the companys covers. political party executives combined owned 10% of the shares. Venus Asset Management, a mutual-fund management company in London, held 12%. Banque du Bruges dt des Pays Bas held 9% and had one object lesson on the board of directors. The remaining 49% of the firms shares were widely held. The firms share traded in Burssels and Frankfurt, Germany. The composition of the companys main intersection points & group A; the apportionment of the market There are three main product categories in the companys precuts. Ice cream accounted for 60% of the companys revenue; yogurt, which was introduced in 1982, contributed just about 20%. The remaining 20% of gross revenue was divided equally between bottled water and fruit juices. These products were exchange throughout Scandinavia, Britain, Belgium, the Netherlands, Luxembourg, westward Germany, and nor thern France. The current situation of the company The companys sales had been static since 1998. As claimed by the managers, this was partly cod to the low population process in northern europium and market saturation in some areas. However exterior observers faulted recent failures in new-product introductions.

today the company is at a debt-to-equity ratio of 125%, which is oft higher than the fairish take of the companys peers in the European consumer-foods industry. This was caused by debt financing significantly in the past few long time to sustain the firms bang-up spending and dividends during a p eriod of expenditure war. Now the expendit! ure war stopped with a allow that the companys market pry 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 get a full essay, format it on our website: OrderCustomPaper.com

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