Friday, October 20, 2017

CASE HARVARD: The cost of capital and its budgeting are globalized in AES (6)

1. What is the problem facing Venerus and his team?
2. What do you think of the proposal they make to estimate the cost of capital? State clearly your opinion on each of the adjustments.
3. Would you approve Venerus's proposal, if you were Director of AES? Why? Justify.
4. Estimate the cost of capital for the Lal Pir project. Is the result reasonable? Why? Justify.
5. Estimate the value of the Lal Pir project. Would you recommend investing? Why? Justify.
6. Estimate the cost of capital for the rest of the projects listed in annex 7.
7. What conclusions do you infer from the case studied?
8. What strengths and weaknesses do you see in the theory studied throughout the course, regarding the problem that presents a case like this, which refers to emerging markets?

Solution in word and excel in www.casesmba.com

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