Business Finance: Analysis of WACC and NPV for Funding Options

Business Finance
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Contents
Business Finance.............................................................................................................................1
Executive Summary.........................................................................................................................3
Main Body.......................................................................................................................................4
Tables showing the calculation of Kidman WACC Using Market data......................................4
Tables showing the calculation of NPV for Both the options.....................................................6
Recommendation to the Kidman resource management as to which alternative the Company
should adopt.................................................................................................................................9
Analysis of Beta risk and the recommendation for the above.....................................................9
References......................................................................................................................................10
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Executive Summary
Business finance is considered as main activity of the company so as to operate their
daily obligations. As there are various sources of finance that are available for the company
hence they have to choose from the source which provides them maximum return and also cost
minimum to them. As in the case of TESLA Inc. this is seen that they had two option of
financing so as to promote their business hence they performed the an analysis such as weighted
average cost of capital to consider the information and the Net present value that they will get
from the funding source. Hence various funding options are available for the company which are
detailed in this report of which building a refinery and outsourcing the supply of ore is
considered two options for the same.
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