Assume that Blaine Kitchenware CEO Victor Dubinski has made the following share repurchase proposal to Blaines board of directors:

Blaine will use $209 million of cash from its balance sheet and $50 million in new debt-bearing interest at the rate of 6.75% to repurchase 14.0 million shares at a price of $18.50 per share.

You have subsequently been hired as a consultant by the members of Blaines board of directors to assess the advantages and disadvantages of this proposal and to provide a recommendation to the board about whether or not to approve this proposal. Write a brief report providing your recommendation, answering the following questions along the way:

1. In general, what are the key advantages and disadvantages of large share repurchases such as the one that Victor Dubinski is proposing? Given the overall size and market capitalization of Blaine Kitchenware, would Dubinskis proposed share repurchase be considered a large one?