Divisional Hurdle Rates at Randolph Corporation
Autor: maxi1994 • April 19, 2016 • Essay • 2,848 Words (12 Pages) • 1,088 Views
Divisional Hurdle Rates at Randolph Corporation[pic 1]
Financial Management and Policy
Week 2
Maastricht University | ||||
School of Business & Economics | ||||
Place & date: | Maastricht, 02/11/2015 | |||
Name, initials: | Saftschuk, A Buttinger, MA | For assessor only | ||
ID number: | I6075739 I6066502 | 1. Content | ||
Study: | IB: Finance Major | 2. Language structure | ||
Course code: | EBC2055 | 3. Language accuracy | ||
Group number: | Tutorial 2, Team 2 | 4. Language: Format & citing/referencing | ||
Tutor name: | Clarissa Hauptmann | Overall: | ||
Writing tutor name: | Advisory grade | |||
Writing assignment: | Week 2, Divisional Hurdle Rates | Assessor’s initials |
Note: The corporate beta in the case is wrong (it should be 0.795 instead of 0.89, since the product of the Ceramic Coating division and its beta has been calculated wrongly. Therefore, we adjusted the data accordingly and worked with the correct numbers.
Table of Contents
Question 1: Estimating the divisional hurdle rates
Question 2: Hurdle rates for projects in different risk categories
Question 3: The risk-adjustment factors used for the hurdle rates
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