Royal Mail plc: Cost of Capital
Schill, Michael J.
Royal Mail plc: Cost of Capital
F-1774 | Published January 27, 2017 | 12 pages Case
Collection: Darden School of Business
Product Details
This case examines the cost of capital estimation for British postal service company Royal Mail plc in 2015—a time when company managers and government regulators were adjusting to private ownership after 500 years of government ownership. The case features a flawed cost of capital estimation analysis that includes common blunders. Students are invited to evaluate this analysis and provide their own alternative estimate for the cost of capital for Royal Mail.
Emphasize that the cost of capital serves as a market-based benchmark of performance; contrast benchmarking based on a cost of funds approach versus an opportunity cost of capital approach; and introduce the mechanics of estimating a firm’s weighted average cost of capital
Products to Upsell
Chains
Larson, Andrea
Terminal Values, Multiples, and Competit...
Harris, Robert S.
Leading with Vulnerability
Belmi, Peter; Thom...
Accounting for Owners’ Equity
Lynch, Luann J.; B...
Share Repurchases
Loutskina, Elena
Finance People
Schill, Michael J.
Ought to "Can": Questions for an Entrepr...
Sarasvathy, Saras ...
Jonathan Virginia, Inc.
Hess, Edward D.