Research Details

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

07/30/2004

Citations

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

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