You have been hired as a consultant to Victor Dubinski, the CEO of Blaine Kitchenware.You are charged with putting together a written report with supporting numerical analysis that addresses the following items:

1.Is the current capital structure and payout policy for Blaine optimal?Explain and justify your conclusion.Use numbers whenever possible.

2.Should Blaine recommend a large share repurchase to the Board of Directors?What are the advantages and disadvantages of this action?Again, explain and justify your conclusions.Use numbers whenever possible.