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  • Week 6

    • Dear students, I hope all is well.

      Here the Video Session

    • Attached a HBR Article for your reading.

      https://moiglobal.com/why-we-invest-in-eastern-europe-201810/

    • Research on the internet to discuss COCA-COLA CO 

      Coca-Cola Co.KO (U.S.: NYSE)

      1. Capital acquisition strategy.
      2. Capital structure composition: Debt, Equity, RE or a blend among the options?  

      Present your findings in a two short paragraph only essay.  

      You are welcome to use this article as a reference: 

       https://bohatala.com/coca-cola-company-capital-budgeting-process-and-procedures/

      Upload your work individually in VLE.

    • Case Study: Netflix Debt Funding - Individual Work 

      Introduction:  

      Since 2011, Netflix has raised roughly $15 billion in debt (mostly by issuing junk bonds) to help fund its content production around the world. That led a group of analysts, reporters, and investors to question whether or not its business model was sustainable long term—especially as streaming competition increased.” (qz.com). Netflix is selling $1 billion of five-year non-callable junk bonds, with half denominated in dollars and half in euros. In its bond-offering announcement, Netflix says it may use the net funds it gains for "content acquisitions, production and development, capital expenditures, investments, working capital and potential acquisitions and strategic transactions." 

      You are to prepare a 150-word report discussing the concept of Junk bonds in terms of their quality and the pricing, provide a few businesses that issue and sell junk bonds, and critically explain how a business-like Netflix finds investors to purchase their junk bonds.  

      Students are welcome to refer to this article or any other relevant to the topic article or reading available on the internet. 

      Submitted in VLE on the due date.

    • Dear students, here the lesson in video and PDF for your study.

      Hoping that you are enjoying the course.

      Best regards, 

    • Ross, S. et al. (2019). Essentials of Corporate Finance (10th ed.) McGraw-Hill Education. Ch.13 p.417-426 Brealey, R., Myers, S., Allen, F. (2019). Principles of Corporate Finance (13th ed.). McGraw-Hill Education. Ch. 9 p.217-223

    • Case Alessia's Kitchen & Co:

      Alessia’s Kitchen & Co.is a publicly traded business that has 1.4 million shares of stock outstanding that sells for $20 / share. The firm’s debt is publicly traded and was recently quoted at 93 % price. It has a total face value of $5 million, and it is currently priced to yield 11%. The risk-free rate is 8%, and the market risk premium is 7%. Finance department estimated the business beta of 0.74, and a tax bracket of 34%. 

      Compute the WACC of the business assuming that the corporate tax rate is 34%.

      Calculations and results to be uploaded in VLE.




      This is an individual activity to be uploaded in VLE.

    • Dear Students, 

      At this point you must have your company approved for this project and your team all set up. 

      This is the second Formative Submission of the Group working towards the Summative 2.  The group must submit criteria 5 of the summative assessment group report to receive feedback.

      The group must prepare a 150-word report and submit individually in VLE.