Student Assignment:
- How would you describe HPL and its position within the private label personal care industry? Consider HPL’s size, growth, profitability and capital structure relative to its “peer” group.
- Using the assumptions made by the Executive VP of Manufacturing, Robert Gates, estimate the projects potential free-cash-flows (FCFs). Are Gates’ projections realistic? If not, what changes might you suggest be incorporated?
- Using CFO Sheila Dowling’s projected weighted-average-cost of capital (WACC) schedule, what discount rate would you choose? What flaws, if any, might be inherent in using the WACC as the discount rate?
- Estimate the project’s net present value. Would you recommend that Tucker Hansson proceed with the investment? If yes, why? If no, why not?
Solution word in www.casesmba.com
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