California Pizza Kitchen

debt financed stock repurchase program

$-$Estimating Debt as $\%$ of Capital given Debt$/$Capital scenarios

$($e$.$g$.$ if total capital $=$ $$50,000,5\%$ Debt$/$Capital implies book values of Debt $=$ $$2500,$ and Equity $=$ $$47500)$

$-$Effects of debt leverage on ROE, Cost of capital

$-$Estimating share price using debt tax shield $($tax saving$)($following announcement of debt financed stock repurchase$)$

$-$Effect of debt financed stock repurchase on number of outstanding shares, EPS, P$/$E$,$ cost of capital

$-$Recommendation of optimum debt structure