California Pizza Kitchen Harvard Case Solution & Analysis

This case examines the issue of financial leverage at California Pizza Kitchen (CPK) in July 2007. With an aversion to debt and a highly lucrative business, CPK direction is contemplating a debt-financed stock buyback program.

cpk case solution

cpk case solution

The case is meant to offer the notion of debt tax shields and an introduction to Modigliani and Miller capital structure insignificance propositions. With the backdrop of a pizza business, the case provide an engaging context to argue the "pizza graphs" that are broadly used in corporate finance curriculum to exemplify the wealth effects of capital structure choice.

PUBLICATION DATE: September 02, 2008 PRODUCT #: UV1203-PDF-ENG

This is just an excerpt. This case is about FINANCE & ACCOUNTING

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