Discount rate of Target; compare to two other companies
Not what you're looking for?
You can choose a company as the company will be used for the rest of the assignment
Your task for this module is to apply the concept of present value to your chosen SLP company. Upload a two to three page paper answering the following questions:
1. What factors do you think determine the discount rate of your SLP company?
2. Do you think your SLP company should have a higher or lower discount rate than the average publicly traded corporation? Or a higher or lower discount rate than other companys in the same industry as your SLP company?
3. Pick two other companies in the same industry as your SLP company. One should be one that you think should have a lower discount rate than your SLP company. The other should be one that you think should have a higher discount rate. Explain your reasoning as to why these two companies should have a higher/lower discount rate than your SLP company
Purchase this Solution
Solution Summary
The discount rate of target is examined. Target is compared to two other companies. The factors which determine the discount rate for the SLP company is given.
Solution Preview
Your task for this module is to apply the concept of present value to your chosen SLP company. Upload a two to three page paper answering the following questions:
1. What factors do you think determine the discount rate of your SLP company?
I have selected Target as the company for this research. Discount rate or WACC (Weighted Average Cost of Capital) is an expression of this cost and is used to see if certain intended investments or strategies or projects or purchases are worthwhile to undertake. (Valuebasedmanagement, 2009)
It is the weighted average cost of all the funds of the organization such as debt and shares. It would consider the following factors:
-Risk appetite of the management
- Future Capital requirements
-Degree of operating leverage
-Economic scenario
-State of business cycle
-Cost of funds
http://www.valuebasedmanagement.net/methods_wacc.html. It is a snapshot of the page as it appeared on 26 Apr 2009 06:01:03 ...
Purchase this Solution
Free BrainMass Quizzes
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
Motivation
This tests some key elements of major motivation theories.
Organizational Behavior (OB)
The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.