Flowers Industries, Inc. (Abridged)
Publication date: 20 January 2017
Abstract
The CFO of a diversified baking company must decide whether to issue convertible debt rather than straight debt or equity. In evaluating the proposed terms of the convertibles offering, the student must value the securities by valuing the call option (using option pricing theory) and the bond component. This case introduces the topic of convertible securities. Student and instructor worksheet files are available for use with the case and teaching note.
Keywords
Citation
Bruner, R.F. and Summers, S. (2017), "Flowers Industries, Inc. (Abridged)", . https://doi.org/10.1108/case.darden.2016.000125
Publisher
:University of Virginia Darden School Foundation
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