According to the course project outline we need three things (risk exposure and mitigants for
1) Identify risk factors of the target, Starbucks and how they can be mitigated (we came up with
some of these last week (i.e. cannibalization of r
What is the value of SGP to Brau?
8% +2 x (4%) = 16%
.3(10%) + .7(16%) = 14.2%
Value of equity = value of operation value of debt
76.96M -15M = 61.96 million
What Dustvacs pre-merger WACC?
Per CAPM.rate equity (re) = RFR + Beta(Rmkt - RFR).and (Rmkt - RFR
(201)Profit or Loss on New Stock Issue
a. $5 per share ($5 x 3 mil shares = $15 mil -14 mil proceeds to Bettles, Inc. - $300k Out of Pocket expenses = $700,000
b. $6 per share ($6 x 3 mil shares = $18 mil -14 mil proceeds to Bettles, Inc. - $300k Out of P
What is the Unlevered Beta of Bickley?
Unlevered beta = 1.3 /(1+(1-0.4)X(0.3/0.7) = 1.03
What will be Bickleys new Beta with this new 15/85 capital structure?
New beta = 1.03 X (1+ (1-0.4) X 0.15/0.85 = 1.14
What is the WACC (Weighted Average Co