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How is California Pizza Kitchen expanding its business?
Now California Pizza Kitchen (CPK) is expanding its business throughout the world to increase its market share and create awareness of its brand in the minds of the customers. The expansion should be done through either the equity financing or debt financing.
How does California Pizza Kitchen save tax payment?
Therefore, California Pizza Kitchen will save tax payment by the tax shield on interest payment of debts; on the other hand, outstanding shares of the company will decrease due to the repurchase of shares.
When did California Pizza Kitchen go into debt?
This case is the question of financial leverage in the California Pizza Kitchen (CPK) in July 2007. With a highly profitable business and an aversion to debt, CPK management considers a debt-financed share repurchase program.
How is the capital structure of California Pizza Kitchen?
The capital structure of California Pizza Kitchen is completely equity financed as the policy of the company had been to adopt a conservative approach. Now California Pizza Kitchen (CPK) is expanding its business throughout the world to increase its market share and create awareness of its brand in the minds of the customers.
Last Update: Oct 2021
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