Case Study: H. J. Heinz: Estimating the Cost of Capital in Uncertain Times
Instructions: The focus of module is the estimation of a firm's cost of capital in the context of uncertainty and real-world constraints as well as financial forecasting. In your core corporate finance course, you have learned the foundations of this highly important financial variable. Here, we are looking at practical applications. That includes the hurdles to estimation and methods to mitigate them. In the previous model, we have also covered some valuation techniques that will prove useful. We are expecting that your case write-up presents a solid quantitative analysis. You should include in the supplementary material, i.e., the appendix, the relevant input data and your calculations. Your main body of text should focus on the practical challenges, necessary assumptions and conclusions from the analysis in the appendix.
4 pages