Take Action

Home | Faculty & Research Overview | Research

Research Details

Bed Bath & Beyond: The Capital Structure Decision

Abstract

Bed Bath & Beyond (BBBY) had no long-term debt on its balance sheet. Although many analysts considered BBBY's balance sheet a strength that permitted greater flexibility, some commented on the risks of its growing cash balance. These concerns raised questions about BBBY's capital structure. In early 2004, interest rates were at an all-time low, making it an attractive time to consider issuing debt and executing either a share repurchase or a one-time special dividend. This case provides a few capital structure proposals and students are asked to analyze those proposals.

Type

Case

Author(s)

Artur Raviv, Timothy Thompson, Phillip Gresh, Shannon Hennessy

Date Published

06/11/2018

Citations

Raviv, Artur, Timothy Thompson, Phillip Gresh, and Shannon Hennessy. Bed Bath & Beyond: The Capital Structure Decision. Case 5-204-270 (KEL082).

KELLOGG INSIGHT

Explore leading research and ideas

Find articles, podcast episodes, and videos that spark ideas in lifelong learners, and inspire those looking to advance in their careers.
learn more

COURSE CATALOG

Review Courses & Schedules

Access information about specific courses and their schedules by viewing the interactive course scheduler tool.
LEARN MORE

DEGREE PROGRAMS

Discover the path to your goals

Whether you choose our Full-Time, Part-Time or Executive MBA program, you’ll enjoy the same unparalleled education, exceptional faculty and distinctive culture.
learn more

Take Action