Finm7402 Case Study Questions 1w4y3a

Assessment Task

Assignment

Title

Nextel Peru: Emerging Market Cost of Capital

Assessment Level

Individual

Distribution Date

18th September 2017

Due Date

15 October 2017by 5pm

Total Weighting

20%

Brief overview of the assessment tasks

Prepare a detailed written business report to the CFO on Nextel’s cost of capital. This is a Harvard Business School Case study.

Submission

See Section 2

Special Instructions

Read all sections of this document BEFORE commencing the assignment tasks.

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1.

Format, presentation and referencing

This Assignment has two components: a written business report and a spreadsheet. Business report

All pages of the business report must include a Header comprising each student’s family name separated by a space. Student numbers should not be included. All pages of the report must also include a Footer with the course code, course title and assignment title as well as the page number. The report will be 4 to 5 pages. Tables, graphs, appendices and reference list or any other information that you have used to substantiate your findings will NOT count towards the page limit. As a guide to the format of written business reports refer to: http://www.victoria.ac.nz/vbs/teaching/resources/VBS-Report-Writing-Guide-2016.pdf In summary, the report must contain the following sections and sub-sections: 1. Cover or Title page - Include an appropriate report title, date of submission, word count, page count, author names (First name, Family Name with Family Name in bold type and uppercase) e.g. Vanitha RAGUNATHAN 2. Executive Summary – see page 5 of the guide. 2. Introduction – see page 6 of the guide. 3. Findings and Discussion – see page 8 of the guide and sub-sections to be included in Section 5 as detailed in Part B - Assignment Requirements 4. Conclusion and Recommendations - see page 6 of the guide. 5. References - use the Academy of Management Journal referencing style (see pages 3 & 4) which can be located with a Google search “academy of management journal style guide for authors”. Save the report document as a PDF and include your name in the file name e.g. Ragunathan.pdf.

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2.

Su ubmission in nstructions

The two components of the Assign nment must bbe submitted by b the due daate. All submi mission links are a located w within the Assessment tab.

Businesss Report

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A hard co opy of the subbmission of the business report is NO OT required. The Assig gnment PDF file is to be submitted TWICE:

1 1.

First sub bmit the file ffor text matcching to the Turn-it-in llink below.

2 2.

Then, su ubmit the ass ignment PDF F file at the link l below foor on-line Bllackboard marking g and feedbaack. I have enabled multiiple attemptss and ONLY the last attempt will w be gradeed.

Submisssion



You will need n to subm mit the PDF an nd TXT files

Addition nal Guidelin nes

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Keep a reccord of your ssubmission confirmations – hard copy or electronic. Refer to th he course EC P for details relating to ap pplications forr an extension to the due date for asssessment. The Assig gnment mustt be your oriiginal work. You have thee opportunity y to assess thee ‘level of teext matchingg’ of your business report to t other subm missions and other o electronic works by subbmitting yourr file to the Turn-it-in T linkk (detailed above) before the due daate. More detaails relating too Turn-it-in can c be accesseed by followiing the AskIT T links on thee UQ Librarry website.

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FINM7402 Individual Case Study Assignment: ‘Nextel Peru: Emerging Market Cost of Capital’ Description: The purpose of this case is to apply your knowledge of Cost of Capital Issues. The case will also

be used to examine student report writing skills, general finance knowledge, research skills and ability to critically evaluate complex case scenarios. The case is to be undertaken individually and students should independently prepare their assignment. All cases will be reviewed for plagiarism and independent content. The University has adopted the following definition of plagiarism: Plagiarism is the act of misrepresenting as one's own original work the ideas, interpretations, words or creative works of another. These include published and unpublished documents, designs, music, sounds, images, photographs, computer codes and ideas gained through working in a group. These ideas, interpretations, words or works may be found in print and/or electronic media.

Students are encouraged to read the UQ Student Integrity and Misconduct policy (http://ppl.app.uq.edu.au/content/3.60.04-student-integrity-and-misconduct) which makes a comprehensive statement about the University's approach to plagiarism, including the approved use of plagiarism detection software, the consequences of plagiarism and the principles associated with preventing plagiarism. Criteria & Marking: In general, the case will be assessed based on:  Accuracy of the answer;  Presentation of a thoughtful and well ed answer;  Clarity of analysis; and  Professional presentation including grammar, spelling, punctuation. Your assignment will also be judged based on its suitability to be presented to a fee paying client. Please refer to the Rubric for information about the criteria. HBS CASE and EXCEL file: Can be ed using the following URLs. CASE (PDF): https://cb.hbsp.harvard.edu/cbmp/pl/65560329/65560331/cf2a3f1a4ed2474a608ee32aff00b d6a 

EXCEL: https://cb.hbsp.harvard.edu/cbmp/pl/65560329/65560333/ca621386a0b33d18ec4acf2a5d60 e8f0

Weighting: 20% of final grade. Due Date: By 5:00pm, Friday 15th October 2017.

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The assignment should be submitted using Blackboard (submissions sent to my email address or submitted through BEL Faculty will be ignored). Follow the procedures outlined in “SUBMISSION INSTRUCTIONS”. LATE SUBMISSION: An assignment (for which no extension has been granted) submitted after the due date and time, will incur a late submission penalty. The penalty is at the rate of 5% (0.4 of a grade) of the total available marks for that particular piece of assessment, for each calendar day or part thereof that the item is overdue. LENGTH: The word limit is strictly 4-5 pages. Please ensure document is double line spaced with size 12 type and with 1” (2.54 cm) margins. Any material exceeding the word limit will not be read and the mark for the assignment will be based on the material up to the point where the word limit was exceeded.

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Case Study Questions Using information in the case, your notes from class, and your experience, your report to the CFO on the firm’s cost of capital should address the following issues (a)

To what extent do you think should d’Anconia should be concerned whether Peru is integrated into or segmented from grobal capital markets? How is likely to affect the estimation of country risk s?

(b)

What is Nextel Peru’s estimated asset beta and what is its estimated required return on assets? After considering your estimate of cost of capital, your estimate of long-range growth rate and free cash flow, do you thing the $400 million purchase price is fair?

You do not need to answer each question explicitly. The questions are designed to guide your thinking. You should, however, discuss all the relevant issues.

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