TY - GEN
T1 - Domino's Pizza Enterprises: Weighted Average Cost of Capital
AU - Southam, Colette
AU - Beamish, Paul W.
AU - Winkler, Matthew
PY - 2021/9/29
Y1 - 2021/9/29
N2 - On November 4, 2020, the group chief financial officer of Domino’s Pizza Enterprises Limited was tasked with determining the cost of capital in preparation for the corporate response to the COVID-19 pandemic. In planning for 2021, the company would need to make considerable investments throughout its franchises in Australia, New Zealand, Japan, and Europe. The cost of capital would be integral to these investment decisions. In the previous year, Domino’s Pizza Enterprises Limited had made A$98.9 million in investments, so the difference of a few per cent in capital costs could mean a swing in millions of dollars in expenditures. The chief financial officer had all background information including balance sheets, income statements, cash flow statements, common stock data, financial ratios, market return data, peer firm data, and an itemized list of debt obligations. Based on this information, he had to derive the company’s cost of capital using a weighted average cost of capital methodology.
AB - On November 4, 2020, the group chief financial officer of Domino’s Pizza Enterprises Limited was tasked with determining the cost of capital in preparation for the corporate response to the COVID-19 pandemic. In planning for 2021, the company would need to make considerable investments throughout its franchises in Australia, New Zealand, Japan, and Europe. The cost of capital would be integral to these investment decisions. In the previous year, Domino’s Pizza Enterprises Limited had made A$98.9 million in investments, so the difference of a few per cent in capital costs could mean a swing in millions of dollars in expenditures. The chief financial officer had all background information including balance sheets, income statements, cash flow statements, common stock data, financial ratios, market return data, peer firm data, and an itemized list of debt obligations. Based on this information, he had to derive the company’s cost of capital using a weighted average cost of capital methodology.
UR - https://www.iveypublishing.ca/s/product/dominos-pizza-enterprises-australia-weighted-average-cost-of-capital-student-spreadsheet/01t5c00000D4sqdAAB
UR - https://www.iveypublishing.ca/s/product/dominos-pizza-enterprises-australia-weighted-average-cost-of-capital-french-version/01t5c00000Ccer8AAB
UR - https://www.iveypublishing.ca/s/product/达美乐披萨澳大利亚加权平均资本成本-dominos-pizza-enterprises-australia-weighted-average-cost-of-capital-simplified-chinese-version/01t5c00000D5yrGAAR
M3 - Article
JO - Ivey Publishing [Case Studies]
JF - Ivey Publishing [Case Studies]
PB - Ivey Business School
ER -