(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 premiums?

(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?

Assessment Task Assignment Title Nextel Peru: Emerging Market Cost of Capital Assessment Level Group Distribution Date 18 September 2017 Due Date 15 October 2017by 5pm Total Weighting 20% The mark awarded to the group may be adjusted for indiviual group members based on peer assessment ratings of the quality of each group member's contribution to the assignment. 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 One (1) group member is to submit the completed tasks on behalf of the group. See 'Part A: Project Administration, 3. Submission Instructions' for detailed guidance on submitting the group's assignment. Special Instructions Read all sections of this document BEFORE commencing the assignment tasks. Part A: Assignment Administration, Part B: Assignment Requirements. This also has instructions on how to download the Nextel case study information. 1 PART A: PROJECT ADMINISTRATION 1. Group Assessment 2. Professional and Academic Integrity 3. Format, presentation and referencing 4. Submission instructions 1. Group Level Assessment Students will form a self-selected groups consisting of four (4) members and submit the Assessment Tasks at a Group level. See: http://www.beyondintractability.org/educationtraining/group-projects as a guide for working in groups. Students must register in a group on the course Blackboard. The sign-up link is located as the last item in the Assessment menu. 2. Your Professional and Academic Integrity (Honesty) As a UQBS student enrolled in FINM3401, it is anticipated that students will act at all times with professional and academic integrity. It is expected that students will always be honest in their actions and communications with the teaching team and your group peers, to commit and complete the assigned tasks to the best of their ability, to correctly acknowledge all sources of ideas/information when they are not their own (to avoid plagiarism), to meet set timelines, and to act professionally in group meetings and dealings with one another (as you would be expected to in the workplace). UQ has an Academic Integrity and Plagiarism policy that highlights 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. If you are not familiar with this policy, see http://www.uq.edu.au/hupp/index.html?page=25128 for further details. Take note of how UQ describes academic integrity and plagiarism. Academic Integrity: Students have a responsibility to maintain the highest standards of academic integrity in their work. Students must not cheat in examinations or other forms of assessment and must ensure they do not plagiarise. 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. 2 3. Format, presentation and referencing This Group 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 be counted 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. Yanho CHANG Jimmy Xu Alex Paton William TUNNY 2. Executive Summary - see page 5 of the guide. 4. Introduction - see page 6 of the guide. 5. 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 6. Conclusion and Recommendations - see page 6 of the guide. 7. 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 group report document as a PDF and include all group member's names in the file name e.g. ChangPatonTunnyXu.pdf. 3 4. Su ubmission instruction ns The two components of the Group p Assignmentt must be subm mitted by thee due date. Eaach group member is also requuired to subm mit, on the sam me day, a Peeer Assessmentt. All submission links aree located with hin the Assessm ment tab. Businesss Report A hard co opy group sub ubmission of the business report is NO OT required. Assign the responsibillity for the on-line submiission of the Group Assig gnment Business Report to onne (1) group member m who o will submitt the PDF file on behalf of all grou up members.. The Grou up Assignmennt Report PD DF file is to be submittedd TWICE: 1 1. First sub bmit the file ffor text matcching to the Turn-it-in llink below. 2 2. Then, su ubmit the Grooup Assignm ment PDF filee at the link bbelow for on n-line Blackboard markingg and feedba ack. I have en nabled multiiple attemptss and ONLY a will bbe graded. the last attempt Submisssion Assign the responsibillity for the on-line submiission of the Group Assig gnment to one (1) grroup memberr who will su ubmit the PD DF and TXT files Peer Each grou up member m must complette a Peer Asssessment at tthe link below w. Selfassessmen nt is also reqquired. The Peer Assessment tool will be made availab ble on Octobber 9th. (and selff) Assessm ment Addition nal Guidelin nes 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 Grou up Assignmeent must be your y group's original woork. You havee the opportunitty to assess thhe 'level of teext matching'' of the groupp's business report r to other grou ups and other electronic works by subm mitting your fi file to the Turrn-it-in link (detailed above) a beforee the due datee. Please note that theree should be only o ONE sub bmission perr group to Turn-it-in. he assignmennt. Multiple submissions Designate one of the grroup memberrs to submit th by differen nt group mem mbers would mean that it looks l like youu have plagiaarised from each otherr. More detaails relating too Turn-it-in can c be accesseed by followiing the AskIT T links on thee UQ Librarry website. 4 PART B: \"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 as a group of four (4) individuals. All cases will be reviewed for plagiarism and independent content. The University has adopted the following definition of plagiarism. See 2. Your Professional and Academic Integrity (Honesty). 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 supported 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. 5 KEY INFORMATION: HBS CASE and EXCEL file: Can be downloaded 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, Sunday 15th October 2017. 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. 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\". 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. 6 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 premiums? (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. 7