The Boeing 7E7 Summary and Objectives (This case contains a spreadsheet) The objective of the case is to evaluate the development of 7E7‚ a new commercial aircraft. Boeing operates in two different business segments‚ a commercial-aircraft business segment and a defense system segment. Now the commercial-aircraft segment is facing stiff competition from Airbus and losing its advantage. Boeing executives wish to come up with a more flexible and fuel efficient jetliner to regain market share.
Premium Internal rate of return Net present value Cash flow
Introduction Founder of Boeing William E. Boeing was the founder of The Boeing Company founded in 1916 in Seattle‚ Washington. William Boeing bought Heath’s shipyard in Seattle‚ Washington on the Duwamish River‚ which became his first airplane factory. He left Yale University in 1903 to Northwest timber industry to take advantage of opportunities and experience that would serve him well in aviation. He built a tiny airplane manufacturing company; Boeing grew into a huge and well known corporation
Premium Boeing Airbus
Boeing 777 QUESTION 1: The WACC that Boeing should use to discount the cash flows for the Boeing 777 investment is the WACC of the Boeing’s commercial division. Step 1: We needed to calculate the Beta of the commercial division of Boeing. We know that Beta of Boeing Corp. is the weighted average of the defense division Beta and the commercial division Beta. We started by calculating the unlevered Beta of Boeing Corp. We did that by unlevering the long-term Boeing Betas i.e.‚ more
Premium Mathematics Arithmetic mean Average
faced by the Boeing company over history and provide a strategic plan for its future growth and development. At first this report gives an introduction on the background and the current situation of Boeing. Then it conducts a series of analysis on the factors that might influence the development of the company‚ they include: SWOT analysis to discover the company’s internal strengths and weaknesses together with its external opportunities and threats; Industry and competitive analysis which by applying
Premium Boeing Boeing Commercial Airplanes Boeing 747
Kristopher Kirkpatrick February 3rd‚ 2015 Finance Policy The Boeing 7E7 I. Statement Of The Problem Michael Bair‚ Boeing Senior Vice President announced a new “super-efficient” jet‚ the Boeing 7E7‚ also known as the “Dreamliner.” The only problem with this announcement was that it was announced in 2003‚ a time period where airline profits were the worse seen in a generation. In order for this plane to get the approval of the board‚ Bair would need to complete a valuation of the 7E7 project and
Premium Net present value Present value Weighted average cost of capital
case or not. The problem # 2 is whether the case can make profit or not. The problem # 3 whether the project can be pulled off within a certain price range – Boeing board wants de (page 259 Paragraph 1 Start at final 258 last case) The problem # 4: what is the exactly demand of the new project Boeing 7E7. The problem # 5: why Boeing Company abandon the previous project‚ which they tried to develop the higher- tech. (sonic Cruiser‚ page 258) Assumption 1: base on the problem # 1‚ I would
Premium Boeing 787 Boeing Commercial Airplanes Weighted average cost of capital
AIRBUS/ BOEING ABSTRACT The airline industry is a competitive environment in which a diversified array of stakeholders constantly strives to gain significant shares of the market. Among them are Boeing and Airbus‚ which are two aircraft manufacturers engaged in a fierce and long-standing rivalry. Over the years‚ this rivalry as produced many different products built at a record pace in which safety and money may be cause for concern. The purpose of this paper is to briefly examine the issues
Premium Airline Federal Aviation Administration
The Boeing 7E7 Boeing is one of the largest and one of the most well-know companies for their aerospace developments in the commercial airplane and integrated defense systems markets. At this time the company currently lost its number one position in the commercial airplane market to Airbus‚ whom has over 50% market share in units sold and in dollar value of sales received. Boeing’s company is composed 54% from their commercial segment and 46% from their defense system segment. Earlier this year
Premium Internal rate of return Cash flow Rate of return
The Boeing Company Fall 2012 Table of Contents I. Legal Structure……………………..……………………………………Pages 1-18 II. Strategic Situation……………………………………………………Pages 19-30 III. Marketing Competition……………………………………………Pages 31-50 IV. Financials………………………………………………………………..Pages 51-70 V. Research Report………………………………………………………Pages 71-91 VI. Stock Ownership……………………………………………………Pages 92-107 VII. Value-Enhancing Transactions……………………………Pages 108-135 VIII. Money Where
Premium Corporate governance Corporation Boeing
The Boeing 7E7 Team 14 Constantine Brocoum Courtney Delia Stephanie Doherty David Dubois Radu Oprea October 15th‚ 2009 Contents Objectives 1 Management Summary 1 Cost of Equity 1 Equity Market Risk Premium 1 Beta 2 Risk Free Rate 2 Capital Structure Weights 2 Boeing 7E7 Project Evaluation 4 Circumstances for an economically attractive project 4 Market Demand 4 Market Share 4 Sensitivity Analysis 4 Conclusion 7 Board approval for the project? 7 Appendices 7 Appendix
Premium Stock market Weighted average cost of capital