ROYAL MAIL PLC$.$

Questions

What is going on with Hillary Hunt and Royal Mail?

Why is it important to estimate a firm's cost of capital? What does it represent? Is the WACC set by investors or by managers?

What mistakes did Kyle Brooks make in his analysis if any? If you do not agree with Kyle's analysis, calculate your own WACC for Royal Mail and be prepared to justify your assumptions. What was your estimate of WACC?

a$.$ Calculate the cost of equity using CAPM.

b$.$ What is your estimate of weight of equity?

c$.$ Which is your estimate of cost of debt?

d$.$ What is your estimate of weight of debt?

Have you estimated the WACC of the comparable firms? Are the estimates of the WACC for comparable firms helpful to Hillary Hunt?