have a direct impact on the variables used in calculating WACC. Such variables include the term structure of interest rate‚ the risk free rate‚ the beta‚ the market risk premium‚ the firm’s marginal tax rate‚ and its capital structure. Since Boeing has two business componentsdefense and commercialfirst begin by determining the unlevered beta for its commercial component. This is accomplished by comparing Lockheed and Northrop’s average unlevered beta which was .48 . The next step is to derive
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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
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When it comes to investing in the 7E7 project the investors have three major options. The first of these options is to invest in the project with a short term gain in mind. Secondly the shareholder can invest expecting the project to pay off in the long-term. And lastly the prospective shareholder can choose to not invest in the project as a whole. In order to evaluate the profitability of the 7E7 project we are going to calculate the WACC of the project and then compare it to the stated IRR of 15
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Force official who was fired from Boeing Co. last year‚ has taken great pains to protect her daughter from the fallout of an ethics scandal involving a $23.5 billion Pentagon contract. On Tuesday‚ Druyun pleaded guilty to a criminal conspiracy count for discussing a Boeing job while she was negotiating a lease for 100 Boeing tanker aircraft. As part of her plea deal‚ prosecutors agreed not to go after Druyun’s daughter‚ Heather McKee‚ who has worked at Boeing for more than three years. But
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frankly‚ even stylish to laud Airbus and to chastise Boeing.” –Excerpt from Bear Stearns Analyst Report as reported in Fortune in August 1999 “We are not here to buy market share.” –Noel Forgeard‚ Chairman‚ Airbus Industrie‚ in August 1999 Airbus—From Challenger to Leader BSTR/046 BOEING’S NIGHTMARE In October 2002‚ The Seattle Times‚ a local newspaper published from Seattle‚ USA‚ where Boeing is headquartered‚ carried a headline story‚ Boeing Is Slipping to No. 2. According to the newspaper
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Boeing Company Boeing is the leading giant of aerospace industry and also a chief manufacturer of combined commercial jetliners and military aircraft. The company delivers its products and services to more than 150 countries‚ and termed as the largest exporter. Boeing products and services accounts of commercial and military aircraft‚ satellites‚ weapons‚ electronic & defence systems‚ launch systems‚ advanced information and communication systems‚ and performance-based logistics and training. The
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* Agenda• The Boeing Company – Background/Five Forces Analysis• Boeing in the 1990’s• The e-Enabled Advantage• Analysis• Recommendations * 3. Boeing Through the Years g h e s June 17: Boeing unveils their new May 17: strategy “e- July 15: The July 15: Delivery of Enabled” at the Boeing Boeing enters Airbus Paris the first Airplane commercial outsold International Dec 1: Boeing 777 Company is aviation with Boeing for Air ShowJuly 28: Airbus to UnitedWorld War named the Boeing 707 the first enters
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The Organizing Function at Boeing Organizing is one of the four functions of management. It is in this function that the plans are beginning to move so therefore the organizing function is definitely different from the other functions of management. This is where top level management hands down positions and assign task to the individuals that possess the appropriate skills. Some organizations have procedure manuals or resource manuals created to information is distributed evenly to staff
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1. I believe that Airbus would have become a viable competitor without subsidies‚ although it would have taken significantly longer. By merely introducing an alternative would have gained new customers as competition not only forces the competitors to produce better products‚ but it drives prices down. Customers like to have options. Because of the enormous cost required to develop an airliner‚ the government subsidies helped Airbus to bring to market its alternative to Boeing’s offerings sooner
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Threat of Substitute Products/Services 17 5. Intensity of Rivalry among Competitors 18 6. Relative Power of other Stakeholders-Unions 18 COMPETITIVE POSITION OF MAJOR AEROSPACE COMPANIES 18 COMPETITOR ANALYSIS OF MAJOR AEROSPACE COMPANIES 20 Boeing Co. 20 Lockheed Martin Corporation 21 Northrop Grumman Corporation 23 Raytheon Co. 24 Other Manufacturers 25 Airbus 25 United Technologies 26 KEY SUCCESS FACTORS 26 Reducing Costs 26 Maintaining Access to Foreign Markets 27 INDUSTRY
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