Langtry Falls expansion case questions 2024

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School

University of Calgary *

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Course

447

Subject

Management

Date

Feb 20, 2024

Type

docx

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Uploaded by AgentHeat3954

Langtry Falls expansion Due January 29, 2024 before the beginning of class. *HARD COPY* Please answer the following four questions. You have one page to submit your answers, single spaced, size 11 font. Please use 1” margins on the top and sides, on the bottom of the page you can have a small margin – place the table at the bottom of the page. To save space simply answer the question, do not record the question on your submission. You should include the completed table for question 4 and the WACC in the table should reflect your decision in question 3 (e.g. an unlevered or a tax adjusted WACC). 1. Are the benchmarks mentioned by Connors and Windsor relevant to the expansion decision? Why or why not? 2. Would a benchmark of the competitors be a useful benchmark for Langtry to use? Why or why not? 3. If a competitor(s) WACC is used as a benchmark, what would be better – unlevered WACC or a tax adjusted WACC? Why? 4. What hurdle rate should be used to evaluate the expansion plan? Your analysis should include a calculation of WACC for each competitor. Include a brief discussion of which beta was used and which competitors are relevant to the decision. Use the table below to record the WACC you have calculated. EL RL PVH Coach Tiffany Fossil % debt K e WACC

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Langtry Falls expansion case questions 2024

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