Corporate Investment Appraisal (1 º Sem 2018/2019)

I call your attention for two new documents:

- There a paper (on PDF) with a detailed explanation of WACC TELUS to better support you on the complexity of calculating the WACC odf a company.

- There is an Excel that calculates the Residual Income and EVA. As I mentioned they should be equal. TELUS has three complexities:

1. Goodwill amortization that is not tax deductible

2. Non-controlling interests

3. The cost of debt as calculated in the case is not identifical to the financial statements.

In order residual income and EVA to give the same result, this three issues must be treated as evidenced in the spreadsheet.

Dear All

You may find all the materials for the Unilever Case in the CIA Course Webpage.

I create the assignment in the Platform Aquila thinking that all of you could sse the assigment. For some reason I have to explore thsi didn´t happen, so I sent you a email a put this post to inform you  the date for delivery is 14 November. Please send the case to my email ( jcneves@iseg.ulisboa.pt) and give me a version on paper.

I hope you all enjoy this learning by doing project. 

The Topic 2 of our course is the cost of capital.

This topics is presented next Wednesday 24th october. In order to prepare yourself for the class, please read the TELUS CASE and write on a paper all your unaswered questions (that is your uncertainties about which interest rates and which costs of capital to use).

This case will be discussed in class. The only preparation you need is read and find out if you are certain how to calculate the cost of capital our you have questions. You can prepare youlself individually or with any other colleague or with your group.