Eskimo Pie Corporation
ESKIMO PIE CORPORATION
Assume that you are an advisor to Mr. Clark, President of Eskimo Pie Corporation.
He has asked you to evaluate the feasibility of the plan proposed by Wheat First Securities by developing an estimate of the value of the Eskimo Pie Company
as a stand-alone company. Exhibit 6 gives you information to work from although you need to use information from the case and you need to use more years in your valuation. (Use the information below to develop an estimate of the cost of equity capital.) Make a recommendation to Mr. Clark on the Wheat First plan.
Market
Value of
Total
Sales
Equity
Ben and Jerrys
$97.00
$110.10
$2.80
Dreyers Ice Cream
354.9
Empire of Carolina
243.1
Steves Homemade Ice Cream
Hershey Foods
2,889.20
4,002.50
282.9
Tootsie Roll
207.9
728.8
You are limited to two pages for this case although there is no limit on the number
of exhibits. Remember you will be graded on your papers clarity, diction, grammar,
punctuation and spelling. Be sure to proof your paper. Late cases will not be accepted
Assume that you are an advisor to Mr. Clark, President of Eskimo Pie Corporation.
He has asked you to evaluate the feasibility of the plan proposed by Wheat First Securities by developing