Question
Has anybody worked on the Diageo plc. case study? If so, what's the best response to the following questions? A. Rework the primary data in
Has anybody worked on the "Diageo plc." case study? If so, what's the best response to the following questions?
A. Rework the primary data in Exhibit 2 to show the effects if Diageo sells its packaged food and restaurant
business.
B. Prepare charts based on data in Exhibit 4 to evaluate Diageo goal of an interest coverage ratio between 5 and 8 and EBITDA to debt ratio of 35% to 40% based on:
1. Their performance
2. The performance of their competitors
3. Diageos desired to maintain an A+ bond rating (refer also to the Exhibit 5).
C. Prepare charts based on the data in Exhibit 7A and 7 B evaluate the likelihood that Diageo will suffer financial distress
D. From Figure 2 evaluate Diageos optimal capital structure. How should Diageo change?
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