Danone is a French multinational food company headquartered in Paris. The company is listed on the Euronext Paris stock exchange, where it is included in the CAC 40 index. Over the years, the group has been structured around three divisions: fresh and plant-based dairy products, bottled waters and specialised nutrition. The group is present in over 120 countries, with sales in 2023 of 27.6 billion euros.
Students are expected to calculate Danone's weighted average cost of capital, using financial and stock market data.
Learners are expected to calculate the cost of capital using the CAPM and Gordon-Shapiro models. They must calculate the beta, using stock market data, by selecting the benchmark index, the estimation period, the frequency of returns, a risk-free rate and a risk premium from among several proposals, justifying all the assumptions made, and taking account of DANONE's environment. Learners will also have to estimate the value of financial debts and their cost based on financial and accounting data.