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Flowers Industries, Inc. (Abridged)

Bruner, Robert F.,...

Case

Flowers Industries, Inc. (Abridged)

Bruner, Robert F.; Summers, Stephanie

F-0812 | Published March 28, 1989 | 20 pages Case

Collection: Darden School of Business

Product Details

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.

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