Chalice Wines Case The Chalice Wine Group (CWG) is a wine producer has a prestigious reputation for producing consistently elegant wines. The CWG owns two vineyards (Chalice and Cimarron) and half of a third (Delta)‚ and also owns three wineries (Chalice‚ Cimarron‚ and Alicia) and half of a fourth (Opera Valley). Chalice winery is the flagship of the four wineries‚ and founded in 1969. In June 1993‚ Chalice was the only publicly-held company in the United States whose principal business is the
Premium Marketing Management Strategic management
The Boeing 7E7 WACC Estimation In order to evaluate the prospective IRRs from the Boeing 7E7‚ we first try to estimate an appropriate required rate of return for accepting this project. The capital asset pricing model is applied to estimate the cost of equity of the commercial aircraft division: R_EC= β_EC*(R_M-R_f )+R_f where REC is the cost of equity capital of the commercial aircraft division. βEC is the beta for the commercial division of Boeing. This beta is used instead of the company’s
Premium Boeing Boeing Commercial Airplanes Airbus
investment of expanding production capacity at Hansson Private Label (HBL) and make a recommendation to Tucker Hansson. In this report‚ I will specifically focus on analyses of the project’s free cash flows (FCFs)‚ weighted average cost of capital (WACC) and net present value (NPV). With a sensitivity analysis‚ it can help us to observe how change in some key project variables would make the project stronger and weaker. This report can provide efficient information for Hansson to evaluate the potential
Premium Net present value Weighted average cost of capital Investment
$600‚000 annually for the next 4 years. Given the project is an extension of their current operations‚ what is the net present value of the this project if the corporate tax rate is 35. D/E = 1.5‚ D/V = 1.5/2.5‚ E/V = 1/2.5‚ re = 28%‚ rd = 10% WACC = (1.5/2.5)*0.10*(1-0.35) + (1/2.5) *0.28 = 15.1% FV = 0‚ PMT = 600‚000‚ n =4‚ r = 15.1% → PV = 1‚709‚527.73 NPV = 1‚709‚527.73-1‚000‚000.00 = 709‚527.73 Take the project 2. Suppose the market value of a firm’s equity is worth $100m and the market
Premium Weighted average cost of capital Stock Net present value
FBE 421 Marriott Corporation ------------------------------------------------- Introduction Founded in 1927‚ Marriott Corporation has become one of the leading food service companies in the United States. As of 1987‚ Marriott recorded a profit of $233 million on sales of $6.5 billion and retained a high sales growth rate of 24%. Marriott runs on three major lines of business lodging‚ contract services‚ and restaurants. Lodging division which includes 361 hotels generated 41% of 1987 sales
Premium Weighted average cost of capital Debt Net present value
using 60 trading days data are 1.45 and 1.62 respectively. If the weighted average cost of capital (WACC) of this project could be lower than its internal rate of return (IRR) with the estimated beta of 1.62‚ the estimated beta of 1.45 would not cause the project to be rejected. Therefore‚ the analysis uses the estimated beta calculated against NYSE composites index‚ which is 1.62‚ to compute the WACC. Risk premium 4.35% Cost of Equity The standard approach to estimation cost of equity
Premium Net present value Weighted average cost of capital Internal rate of return
1. How does Marriott use its estimate of its cost of capital? Does this make sense? Marriott has defined a clear financial strategy containing four elements. To determine the cost of capital‚ which also acted as hurdle rate for investment decision‚ cost of capital estimates were generated from each of the three business divisions; lodging‚ contract services and restaurants. Each division estimates its cost of capital based on: Debt Capacity Cost of Debt Cost of Equity All of the above are
Premium Weighted average cost of capital Finance
NAME Cuvée Sir Winston Churchill Pol Roger Country France Region Champagne Subregion Vallé de la Marne Village Épernay Estate vineyard N/A (Producer: Pol Roger) Grapes varieties 60 % Pinot Noir‚ 40 % Chardonnay Climate Conditions Moderate cool climate‚ annual average temperature 10 Celsius. Valleys can be very rainy and windy. Soil Composition Very Calcareous soil‚ limestone. The soil has perfect balance between permeability and the ability to store humidity from the rain in case
Premium Chardonnay Wine Cheese
INFOR‚ Vol. 51‚ No. 2‚ May 2013‚ pp. 53–63 ISSN 0315-5986|EISSN 1916-0615 Operational Research in the Wine Supply Chain Luigi Moccia Istituto di Calcolo e Reti ad Alte Prestazioni‚ Consiglio Nazionale delle Ricerche‚ Via P. Bucci 41C‚ 87036 Rende (CS)‚ Italy‚ e-mail: luigi.moccia@icar.cnr.it Abstract—This article is a survey of operational research contributions to the operational‚ tactical‚ and strategic planning of the wine supply chain. It is divided into three parts. The introduction
Premium Wine
Jaquelynn Renderos Geology 112 Section 30 Professor Reed December 18‚ 2016 Preparedness Plan Final This paper is focused on the seismic hazard analysis‚ structural safety quiz of my household‚ and preparedness plan. The seismic hazard analysis is composed of fault rupture‚ ground shaking intensity‚ landslide potential‚ liquefaction susceptibility‚ and if there is a body of water nearby. Next is the structural safety quiz which consists of five to
Premium San Francisco Bay Area San Andreas Fault