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Cost of Capital

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C/F/1260. Literature review. An evaluation of risk, return and the CAPM theory

WORDS:
1700
DATE:
2011
PRICE:
19.99 GBP

This literature review focuses on the topic of risk and return, as well as the concept of the Capital Asset Pricing Model (CAPM). The paper provides the background to CAPM, and illustrates how it was first introduced. The advantages and criticisms of this tool are outlined, and the paper also highlights different researcher’s views on the subject.

 

KEYWORDS: Literature review, risk and return, CAPM, capital asset pricing model!,

 

S/F/306. An examination of financial modeling: Capital Asset Pricing Model and the Market Model

WORDS:
2900
DATE:
2011
PRICE:
29.99 GBP

This paper examines the Capital Asset Pricing Model (CAPM) and the Market Model. The paper presents a review of literature that focuses on CAPM and the arbitrage pricing theory (APT). The paper then discusses topics like estimated beta, and examines the effect that the Incorrect specification of the market portfolio and the investor’s portfolio size has on beta estimates.

 

KEYWORDS: Capital Asset Pricing Model, Market Model, CAPM, market model, arbitrage pricing theory, APT, beta, market portfolio, investor portfolio,

 

C/F/1183. Project Valuation techniques. Case study Sampa Video

WORDS:
4200
DATE:
2011
PRICE:
49.99 GBP

This paper focuses on Sampa Video, a video shop chain in Boston, and begins by providing the background to the company. The company is assessed in reference to project valuation techniques. The paper looks at Adjusted Present Value Method (APV), Weighted Average Cost of Capital Method (WACC), and Debt Balances. This is followed by an analysis of the results. This paper does not contain a reference list.

 

KEYWORDS: Sampa Video, project valuation, Adjusted Present Value Method, APV, Weighted Average Cost of Capital Method, WACC, Debt Balances,

 

C/F/1098. WACC financial analysis: theory and application to Sainsbury's and Kingfisher

WORDS:
2500
DATE:
2011
PRICE:
29.99 GBP

The paper examines the methods and functions of the weighted average cost of capital (WACC) analysis explaining the formula of WACC calculation, evaluating the significance of capital cost for businesses, identifying factors that affect the value of WACC in organisations, and comparing the calculated values of WACC in Sainsbury’s and Kingfisher Plc.

 

KEYWORDS: WACC, weighted average cost of capital, Sainsbury’s, Kingfisher,

 

C/F/1067. Dissertation. Relevance of CAPM for stock prices movement of oil companies: case study of BP

WORDS:
13250
ADD-ONS:
Excel Data
DATE:
2011
PRICE:
139.99 GBP

The dissertation investigates the application of capital asset pricing model (CAPM) to the movement of stock prices in the oil industry with the focus on British Petroleum (BP). The review of literature touches on the background and performance history of BP, the theory of portfolio management, the concept of CAPM, etc. An overview of the stock market is presented explaining factors that affect the movement of stock prices. A case study is conducted of the BP stock prices movement from August 2005 to August 2010 comparing it with other oil companies. The role of CAPM in determining stock prices of oil companies is examined. Conclusions are made about the relevance of the CAPM model in evaluating stock prices in the oil industry.

 

KEYWORDS: Dissertation, CAPM, Capital Asset Pricing Model, stock prices, oil companies, British Petroleum, PB,

 

S/F/282. Capital Budgeting & Investment Appraisal for Alpha Plc

WORDS:
1900
DATE:
2011
PRICE:
19.99 GBP

This paper advises Alpha Plc whether or not they should purchase South Wales opencast coalmine, and aims to assess whether it is a profitable venture. The paper uses a discounted cash flow method to analyze the project, and chooses the Net Present Value (NPV) method. The results from the analysis are examined, and the paper provides reasons why the venture is unprofitable. The paper then discusses investment appraisals, focusing on topics like cash flows, interest payments, working capital, and relevant costs. The cost of capital and risk is then discussed in detail and the paper concludes by suggesting recommendations for the company.

 

KEYWORDS: Capital Budgeting, Investment Appraisal, Alpha Plc, discounted cash flow, Net Present Value, NPV, cash flows, interest payments, working capital, cost of capital, risk,

 

C/F/950. Proposal. Examination of the dividend discount model and P/E ratio

WORDS:
2400
DATE:
2010
PRICE:
29.99 GBP

This proposal examines the Dividend discount model and P/E ratio, two models used to estimate equity and business values. The paper aims to identify the variables that are the most influential to business valuation frameworks. The expected findings are highlighted, as are the research questions. The project has four steps to analyse the equity financing theories and their relevance to business valuation framework, analyse the empirical studies on equity financing, to evaluate the equity financing and valuation framework in the recent financial crisis, and to analyse the data. Data will be collected through analysis of secondary data, collected from sources like electronic databases, e-books and library resources.

 

KEYWORDS: Proposal, Dividend discount model, P/E ratio, equity, business values, business valuation frameworks, equity financing theories, financial crisis,

 

C/F/948. Capital asset pricing model and the market model: case studies Barclays, Diageo, Intercontinental Hotels Group (IHG), Imperial Tobacco, and Vodafone

WORDS:
3150
ADD-ONS:
Analysis Data
DATE:
2010
PRICE:
39.99 GBP

This paper examines the Capital asset pricing model (CAPM) and the market model, focusing on Barclays, Diageo, Intercontinental Hotels Group (IHG), Imperial Tobacco, and Vodafone. The market model calculates the firm’s beta and alpha, and the CAPM calculates the firms expected returns. The paper examines the results of all the calculations, and assesses what the findings say about the companies discussed. This paper includes a Microsoft excel spreadsheet containing all of the data for the calculations.

 

KEYWORDS: Capital asset pricing model, market model, Barclays, Diageo, Intercontinental Hotels Group, IHG, Imperial Tobacco, Vodafone, beta, alpha, CAPM, expected returns, portfolio management,

 

C/F/920. Compass Maritime services, LLC: Valuing ships. Harvard Business School case study analysis

WORDS:
1450
DATE:
2010
PRICE:
19.99 GBP

This paper analyses the Harvard Business School case study ‘Compass Maritime services, LLC: Valuing ships’ by Benjamin C. Esty and Albert Sheen. This paper aims to analyse and compare two methods of asset valuation that can be used to value a ship. The first is comparable transactions, which is used to determine an asset’s value for sale. The second is regression analysis, which analyses the relationships between two or more variables. The paper evaluates two forms of this, simple and multiple regression. Conclusions are made regarding the importance of asset valuation.

 

KEYWORDS: Harvard Business School, Compass Maritime services, LLC: Valuing ships, asset valuation, comparable transactions, regression analysis, multiple regression, simple regression,

 

C/F/866. An evaluation of the options available to raise capital for new investments

WORDS:
1400
DATE:
2010
PRICE:
19.99 GBP

This paper looks at debt and equity in regards to raising capital for new investments. The Capital Asser Pricing Model (CAPM) and Weighted Average Cost of Capital (WACC) are both used to determine the risk of the company in relation to debt and equity and the costs of capital rising as a consequence. The paper discusses debt purchase, gearing ratio, capital structure theory, trade off theory, and pecking order theory. The paper concludes by suggesting that purchasing debt is an option for financing new investments.

 

KEYWORDS: Debt, equity, capital, investments, Capital Asser Pricing Model, CAPM, Weighted Average Cost of Capital, WACC, capital, debt purchase, gearing ratio, capital structure theory, trade off theory, pecking order theory,

 

C/F/829. WACC analysis of Baltika Breweries and Fuller Smith & Turner

WORDS:
1750
DATE:
2010
PRICE:
19.99 GBP

The paper presents comparative analysis of investment returns from Baltika Breweries (Russia) and Fuller Smith & Turner Plc based on their equity costs and WACC (Weighted Average Cost of Capital) using the methods of CAPM and discussing risks associated with the businesses.

 

KEYWORDS: Fuller Smith & Turner, Baltika Breweries, investment returns, WACC,

 

C/F/790. Calculations of Vodafone's WACC

WORDS:
355
DATE:
2010
PRICE:
9.99 GBP

The paper presents calculations of Vodafone's annual Weighted Average Cost Capital (WACC) over 2005-2009

 

KEYWORDS: Vodafone, WACC,

 

C/F/744. Causes of corporate failures and estimation of Debenhams' financial health

WORDS:
3250
DATE:
2010
PRICE:
39.99 GBP

The paper examines the causes of corporate failures looking at the methods used to assess financial health of the company. A case study of the financial performance of Debenhams is presented looking at their ratios during the period of 2005-2009 and applying the Mills model to calculate their weighted average cost of capital (WACC) and assess the effects of the stock market crash related to the credit crunch on the company’s market returns.

 

KEYWORDS: Ratio analysis, Profitability, Solvency, financial performance, corporate failure, Debenhams, WACC, Mills model,

 

C/F/737. Capital Asset Pricing Model: Case study of Burberry

WORDS:
2300
DATE:
2010
PRICE:
29.99 GBP

The paper looks at the use of the Capital Asset Pricing Model (CAPM) in estimating the company’s beta and expected returns. Estimation of the equity beta and expected return on the shares of Burberry Group is presented discussing the applications and limitations of CAPM.

 

KEYWORDS: Capital Asset Pricing Model, CAPM, Burberry, CAPM, Cost of Equity, Beta, Expected Return,

 

C/F/709. Theoretical underpinnings of sources and cost of capital

WORDS:
2750
DATE:
2010
PRICE:
29.99 GBP

The paper looks at the ability of the companies to raise capital providing information on capital markets and the efficient market hypothesis, identifying debt and equity as the sources of capital, critically evaluating the idea of optimal capital structure, and explaining the methods used to calculate the cost of capital, i.e. weighted average cost of capital (WACC), share valuation, the irrelevance theorem by Miller and Modigliani, etc.

 

KEYWORDS: raising capital, cost of capital, efficient market hypothesis, sources of capital, share valuation,

 

C/F/702. Factors affecting profit: costing systems

WORDS:
2950
DATE:
2010
PRICE:
29.99 GBP

The paper looks at the factors affecting the pricing decision describing various types of cost and costing systems, discussing the role and limitations of standard costing and variance analysis in management accounting, highlighting advantages and disadvantages of introducing an Activity Based Costing (ABC) system to replace the current Absorption Costing System (ACS), and recommending the use of ABC.

 

KEYWORDS: managerial accounting, absorption costing, variance analysis, profit, activity base costing, ABC,

 

S/F/229. Cost of capital: case study of Tesco projects

WORDS:
1000
DATE:
2009
PRICE:
19.99 GBP

The paper examines the significance of the suitable rate for the cost of capital looking at the relevant aspects of capital structure and risk exposure, explaining the method used to calculate the cost of capital, and discussing the risk exposure of Tesco's projects in the gas utility and semiconductor sector.

 

KEYWORDS: Cost of capital, Tesco, capital structure, risk exposure,

 

C/F/596. Wrigley Company: Capital Structure, Valuation and Cost of Capital

WORDS:
700
DATE:
2009
PRICE:
9.99 GBP

The paper offers a case study of Wrigley Company examining the effect of capital restructuring related to the company’s new debt on their financial and business situation including share repurchasing, changes in the company’s weighted average cost of capital (WACC), voting control, etc.

 

KEYWORDS: Wrigley, weighted average cost of capital, WACC, equity, debt, share, dividend, repurchase,

 

C/F/594. Traditional view of capital structure and Modigliani and Miller theory

WORDS:
1500
DATE:
2009
PRICE:
19.99 GBP

The paper provides a review of theories on the capital structure of companies explaining the meaning of a target capital structure from the traditional perspective, and discussing the capital irrelevancy proposition introduced by Modigliani and Miller (1958). The weaknesses of their theory are highlighted discussing the key assumptions that changed Modigliani and Miller’s theory in 1962 and proved the influence of capital structure on cost of capital.

 

KEYWORDS: Modigliani and Miller, capital structure, Cost of Capital,

 

C/F/591. Mercury Athletic Footwear: Valuing the Opportunity. Harvard Business School Case study analysis

WORDS:
2050
DATE:
2009
PRICE:
29.99 GBP

This paper is analysing “Mercury Athletic Footwear: Valuing the Opportunity” case study by Luehrman and Heilprin. The paper raises the question of importance of financial valuation a subsidiary during the pre-acquisition period. This step enables the acquiring company to foresee opportunities and threats that may be hidden in the target firm. Thus, the work provides the set of cash flow projections of a footwear company that is about to be acquired. In the course of research the weighted average cost of capital (WACC) has been estimated and terminal value has been determined. The paper also contains the assessment of acquisition premiums and synergies.

 

KEYWORDS: Mercury Athletic Footwear, Harvard case study, WACC, depreciation, cash flow, acquisition, Luehrman, Heilprin,

 

C/F/582. Shareholder and investment project valuation

WORDS:
2100
DATE:
2009
PRICE:
29.99 GBP

The paper examines the concept of shareholder value reviewing the approaches to shareholder valuation (SV), describing the models of SV including Rappaport’s SV model, outlining their positive and negative influence on the company and shareholders, etc. Numerical examples of investment project valuation are presented using the valuation methods of net present value (NVP) and internal rate of return (IRR). Conflicts arising between these methods are described and explained.

 

KEYWORDS: Shareholder valuation, investment project valuation, valuation methods, NVP, IRR,

 

C/F/572. Cost of Capital and Methods of Valuation

WORDS:
2300
DATE:
2009
PRICE:
29.99 GBP

The paper looks at the methods used in corporate finance to evaluate investment projects including simple rate of return, net present value, payback period, internal rate of return and others. Advantages and disadvantages of each of the method are discussed, the capital asset pricing model (CAPM) is reviewed using the examples of Linton Ltd project and estimating the expected rate of return on the investment.

 

KEYWORDS: Cost of capital, CAPM, NPV, PBP, SRR, IRR, rate of return, investment appraisal,

 

C/F/564. Calculating Cost of Capital

WORDS:
1000
DATE:
2009
PRICE:
19.99 GBP

The paper looks at the estimation of the expected return on an investment project known as cost of capital or opportunity cost discussing the weighted average cost of capital (WACC), economic value added (EVA), net present value (NPV) of the future cash flows, capital asset pricing model (CAPM), etc.

 

KEYWORDS: WACC, CAPM, modern portfolio theory, EVA, NVP, cost of equity, cost of capital,

 

C/F/549. Cost of Capital and Methods of Valuation

WORDS:
2000
DATE:
2009
PRICE:
29.99 GBP

The paper looks at the methods used in corporate finance to evaluate investment projects including simple rate of return (SRR), net present value (NPV), payback period (PBP), internal rate of return and others. Advantages and disadvantages of each method are identified, the capital asset pricing model (CAPM) is reviewed and illustrated with an example that estimates the expected rate of return on an investment.

 

KEYWORDS: Cost of capital, net present value, NPV, pay back period, PBP, rate of return, CAMP,

 

C/F/296. Perspective on Basel II implications on Banks

WORDS:
2000
DATE:
2008
PRICE:
29.99 GBP

The paper examines the emergence of Basel II Accord describing the key elements of the accord and focusing on the capital adequacy concept and how it relates to the new Accord. Concerns and issues surrounding Basel II implementation are considered suggesting measures to mitigate those issues.

 

KEYWORDS: Basel I, Basel II, Capital Adequacy, disclosure requirement, operational charge, banks,