California pizza kitchen case study.
1- Are the capital structure decisions relevant for maximizing the shareholders’ value?
2- What is the ratio of debt-to-equity that maximizes the shareholder’s value?
3- Using the scenarios in case Exhibit 9, what role does leverage play in affecting the return on equity (ROE) for CPK?
4- Why should the stockholders care about maximizing firm value? Shouldn’t they be interested in strategies that maximize shareholder value only?
5 What is the case for not doing the recapitalization?
These questions must include each of ESP and WACC calculations
California pizza kitchen case study.