Homework: Royal Mail
i. What is going on with Hillary Hunt and Royal Mail? Discuss relevant background information and the key issues facing Royal Mail.
ii. Why is it important to estimate a firm's cost of capital? What does it represent? Is it set by investors or by managers? Who or what determines the cost of capital?
iii. What do you think of Kyle Brooks estimate of the WACC? Identify and explain any errors that you feel Kyle Brooks made.
iv. Re-estimate the WACC for Royal Mail & the Comparable Firms.
v. Are the estimates of the WACC for comparable firms helpful to Hillary Hunt? Why?
Format your homework according to the give formatting requirements:
a. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
b. The response also includes a cover page containing the title of the homework, the course title, the student's name, and the date. The cover page is not included in the required page length.
c. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.