Financial and ESG Reporting (1 º Sem 2020/2021)

Good afternoon, again

Regarding the final work, I clarify that all attachments, tables, excel files or other appendix can be presented and they are not included in the 5-pages limit.

I have uploaded in the folder "Final work" an excel file that you should use in order to compute for value creation. This file is delivered by Damodaran and allows the estimation of the cost of equity (Ke) based on CAPM model. As the estimation of Ke is not part of our syllabus, I have adjusted the file with data for Portugal's risk-free rate and market premmium in 2020 and you only have to choose the industry of your companies and use the cost of equity delivered by excel. The Beta (a metric for the company risk) should be also adjusted for your specific companies, but don't change the Beta (it's an average for that industry) and work with a simplified cost of equity (it's more than enough, considering the purposes of your final work). 

Good work!

Rita Fuentes Henriques