Question: consider the following questions for this week's case (note that you may have to post calculations or an excel file) Should B/E Aerospace, Inc. use
consider the following questions for this week's case (note that you may have to post calculations or an excel file) Should B/E Aerospace, Inc. use surplus cash to retire $50 million of debt in October 2004? Develop a rough forecast of BEAV's funds generated from operations for 2005 and 2006. At the time of the case, security analysts had forecast a return to profitability in 2005 with projected earnings of $28 million and twice that amount in 2006. Management believed that funds from depreciation would meet the increases in working capital and plant maintenance. What is an optimal capital structure for BEAV? Why? If internal funds were used to reduce debt, would a viable capital structure be in place at the end of 2005 and 2006? If not, what steps could management take to achieve the desired capital structure
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