Purchase the case "Blaine Kitchenware, Inc.: Capital Structure"

questions: 1. Do you believe Blaines current capital structure and payout policy appropriate? Why or why not?

2. Should Dubinski recommend a large share repurchase to the Board? What are the advantages and disadvantages?

3. Consider the following repurchase proposal: buy back 14 million shares at a price of $18.50 per share with $209 million of cash and 50 million new debts at 6.75%. How would such buyback affect the firm?

4. As a member of BKIs controlling family, would you be in favor of this proposal? Would you be in favor as a non-family shareholder?