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Colt Industries

Conroy, Robert M.

Case

Colt Industries

Conroy, Robert M.

F-0901 | Published March 29, 1989 | 9 pages Case

Collection: Darden School of Business

Product Details

The focus of this case is an announcement by Colt Industries of its intent to recapitalize the firm. The management proposes to issue $1.5 billion in new debt and pay an $85 cash dividend. The stock price before the announcement was $67. The case requires the student to estimate what the stock price will be after the recapitalization.

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