- What is the problem facing Venerus and his team?
- What do you think of the proposal they make to estimate the cost of capital? State clearly your opinion on each of the adjustments.
- Would you approve Venerus’s proposal, if you were Director of AES? Why? Justify.
- Estimate the cost of capital for the Lal Pir project. Is the result reasonable? Why? Justify.
- Estimate the value of the Lal Pir project. Would you recommend investing? Why? Justify.
- Estimate the cost of capital for the rest of the projects listed in annex 7.
- What conclusions do you infer from the case studied?
- What strengths and weaknesses do you see in the theory studied throughout the course, regarding the problem that presents a case like this, which refers to emerging markets?
Solution in word and excel

CASE HARVARD: Logan Distributing Company of Atlanta (9)