Danone: Estimating the weighted average of capital

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.

Understanding the calculation of the cost of capital.
Enabling students to compare theory and practice
Identify and select relevant data from a universal registration document
Master the key steps in calculating the WACC.
Understand the choices to be made and be able to justify them.
Understand the implications of knowing a company's WACC.
Reflecting on the link between extra-financial performance and the weighted average cost of capital

Cost of capital ; CMPC ; cost of equity; cost of debt; ; MEDAF ; Gordon Shapiro ; beta ; risk

Management schools, universities, continuing education, finance specialisation

Commerce de gros (commerce interentreprises) alimentaire spécialisé divers

Duration: 3 hours. Answer key to show to students (PowerPoint), answer key with comments for the instructor. Excel files with all calculations, one for the instructor, one for the students. Exam case.

Année de la problématique : 2024

Livraison : Livraison par lien de téléchargement

Nombre de pages : 21