The Boeing 7E7 Team 14 Constantine Brocoum Courtney Delia Stephanie Doherty David Dubois Radu Oprea October 15th‚ 2009 Contents Objectives 1 Management Summary 1 Cost of Equity 1 Equity Market Risk Premium 1 Beta 2 Risk Free Rate 2 Capital Structure Weights 2 Boeing 7E7 Project Evaluation 4 Circumstances for an economically attractive project 4 Market Demand 4 Market Share 4 Sensitivity Analysis 4 Conclusion 7 Board approval for the project? 7 Appendices 7 Appendix
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refer to your Essentials of Business I Corporate Annual Report project for the appropriate ratios.) Comment on the financial health of the company. Please look at ratio trends and compare to industry average. (4) WEIGHTED AVERAGE COST OF CAPTIAL (WACC): Estimate the components of the cost of capital for your company using market data. a)
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NIKE’S FINANCIAL RATIOS 3 Liquidity or Working Capital 3 Current Ratio 3 Quick Ratio 3 Working Capital 4 Efficiency and Asset Management 5 Total Asset Turnover 5 Fixed Asset Turnover 5 Days Sales Outstanding 5 Debt Management 6 Total liabilities to Total Assets 6 Long-Term Debt to Capital 6 Times Interest Earned (TIE) Ratio 7 Performance 7 Profit Margins 7 Return on Assets 8 Dupont Ratio 8 Bond Evaluation 9 Market Value of Debt‚ Debt Structure‚ Average maturity of Debt 9 Effect of Changing Interest
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following report details USEC’s opportunity to embark on a massive capital-expenditure project known as the American Centrifuge Project (ACP). Currently‚ USEC is utilizing gas-diffusion technology to enrich uranium. 100 million dollars have already been invested with the Department of Energy (DOE) in the development of the ACP technology‚ and a balance of $1.6 billion would be required to execute the project. While the investment cost is significant‚ the ACP would provide distinct advantages for USEC
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the company invests in projects with a positive NPV and a irr higher then the set hurdle rate - relative to market interest rates‚ project risk‚ and estimates . then this is consistent with its strategy of growth Optimize the use of debt in the capital structure. by focusing on its ability to service its debt. The lower they can bring their debt percentage their value will increase and is consistent with its strategy of growth Repurchase undervalued shares Buys backs will result in a higher
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CASE QUESTIONS Cash Flows and Value. Cost of Capital Case 1: Hop-In Food Stores‚ Inc. 1. Determine the correct price for this particular IPO. Use several methods to do this and compare them. 2. What extra information would you try to acquire in a real life situation? Case 2: Chem-Cal Corporation 1. How do you calculate the WACC for this firm? 2. What is the cost of capital of the debt‚ preferred stock‚ and common stock (assume the equity beta is 1.22)? 3. Calculate the WACC. How can a WACC be used
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range of support services. The company based in Haifa‚ Israel and currently has 12‚500 employees around the world mainly in the US. Elbit’s stock is traded in both TASE (Tel Aviv Stock Exchange) and the NASDAQ as ESLT. 4 Elbit Systems has an average risk level‚ which mainly affected by geopolitical risks that can affect the company sales‚ security budget in major markets such as Israel and the US. Ilit Raz EMBA – Dickens Cohort Jan 2013 Discount
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earnings. The calculation for economic earnings can be measured as follow: Economic Earnings = NOPAT – (WACC X Average Invested Capital) In determining economic earnings‚ all companies within the Group had to apply a 10% cost of capital as per SURIA’s requirements. From Appendix G‚ it shows the companies’ NOPAT‚ Average Invested Capital and Weighted Average Cost of Capital (WACC) and from that information‚ the performance of each company can be measured as follow: The
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closer‚ while the working capital investment becomes lower with a lower customer credit risk. Financial forecast: The business plan has been developed looking at an exhaustive market analysis. Forecast data are reliable; they refer to the first five years. The target is to open 80 franchising shops within five years. Indeed‚ is that the optimal minimum number of shops in order to achieve the optimal minimal production output. The questions: 1) Which is the fair cost of capital for the company? 2) Which
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Overview The footwear industry is a mature‚ very competitive with low growth and stable profit margins. Active Gear‚ Inc. is a privately held footwear company which is a profitable firm in the industry with $470.3 million revenue in 2006. West Coast Fashions‚ Inc is a large business of men’s and women’s apparel decided to dispose of one of their divisions: Mercury Athletic with $431.1 million revenue in 2006. AGI is very profitable but it is smaller than other competitors‚ which is becoming a competitive
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