Subject category:
Finance, Accounting and Control
Published by:
Hult Publishing
Length: 11 pages
Data source: Generalised experience
Share a link:
https://casecent.re/p/209083
Write a review
|
No reviews for this item
This product has not been used yet
Abstract
This is part of a case series. Hospitality Corporation is a multidivisional company of boutique hotels and specialty coffee shops located in the US south coast. For the past 10 years, the company has achieved considerable growth both organically and through acquisitions. More recently, increased competition and volatile business conditions have impacted the company's profitability and stock price. The firm is revisiting its value creation drivers, and an important component of this new effort is to adequately determine and effectively manage its cost of capital. Yasmin Bishara, as Hospitality's Executive Assistant to the CFO, has been asked to present an analysis of the firm's cost of capital and how it should be managed to achieve enhanced capital budgeting and resource allocation. In Part A of the case, Yasmin calculated the overall company WACC as well as the hurdle rates for each of its two divisions. She now contemplates how climate change risk can be incorporated into her capital budgeting decisions.
Teaching and learning
This item is suitable for undergraduate, postgraduate and executive education courses.Geographical setting
Region:
Americas
Country:
United States
Featured company
Hospitality Corporation
Type:
Public company
Featured protagonist
- Yasmin Bishara (female), Executive Assistant to the CFO
About
Abstract
This is part of a case series. Hospitality Corporation is a multidivisional company of boutique hotels and specialty coffee shops located in the US south coast. For the past 10 years, the company has achieved considerable growth both organically and through acquisitions. More recently, increased competition and volatile business conditions have impacted the company's profitability and stock price. The firm is revisiting its value creation drivers, and an important component of this new effort is to adequately determine and effectively manage its cost of capital. Yasmin Bishara, as Hospitality's Executive Assistant to the CFO, has been asked to present an analysis of the firm's cost of capital and how it should be managed to achieve enhanced capital budgeting and resource allocation. In Part A of the case, Yasmin calculated the overall company WACC as well as the hurdle rates for each of its two divisions. She now contemplates how climate change risk can be incorporated into her capital budgeting decisions.
Teaching and learning
This item is suitable for undergraduate, postgraduate and executive education courses.Settings
Geographical setting
Region:
Americas
Country:
United States
Featured company
Hospitality Corporation
Type:
Public company
Featured protagonist
- Yasmin Bishara (female), Executive Assistant to the CFO





