Read Sara Lee Attempts to Create Value through Restructuring.
Write a 5 page paper (1500 or more words) in APA format in response to the questions listed below:
- Sara Lee is often considered one of the worst managed companies in existence. A sign of their underperformance is their dividend growth rate. If you were a shareholder that weathered all the divestitures, restructuring and other events, would have considered them a success? Keep in mind that you care about stock price and dividends when investing in a big board company.
- The Hanes spinoff realized profit for those who were able to get shares while being shareholders in Sara Lee. But were the gains enough to offset your holding and decrease in dividends from Sara Lee stock? (This is a bit subjective.)
- The divestitures mentioned in the story would make most shareholders scream in anger as the company gutted itself. Despite the billions obtained from divesting activities, did that cash help streamline Sara Lee?
- Now it is time for your opinion-would you have invested in Sara Lee and held through the restructuring, divesting, and spinoff? Why or why not?