BLAINE KITCHENWARE Case Study 1. Evaluate the financial performance of Blaine Kitchen Ware over the period 2004.2005 and 2006 using financial ratios and commonsize analysis.

2. Calculate Blaine Kitchenware's Free cash flow, equity cash flow and capital cash flow for 2004,2005 and 2006.

3. Estimate Blaine Kitchenware's WACC in 2006, assuming an equity risk premium of 7.0%

4. Critically evaluate Blaine Kitchenware's current capital structure and dividend policy.

5. Analyze the impact of the proposed restructuring on Blaine's 2006 financial ratios, free cash flow, equity cash flow and wacc. (prepare the 2006 statements as if the restructuring was in place and analyze the impact.

6. Assuming a constant long term growth rate of 3%, estimate Blaine's share price in 2006 and after the proposed restructuring.