Business Economics
Module assigment Sky
Made by Strategy Consulting
2014
,Business Economics
Module assignment Sky
Commissioned by Stenden University Leeuwarden
Media and Entertainment Management
Module: Strategic Management in the Media
Teacher: Harro Prins
Submission date: 07-04-2014
Authors:
Daphne Bennink 208728
Linda van Duijvenvoorde 236454
Robin van Rossum 218634
Boyan de Boer 225878
Chloë Karsseboom 203955
Table of Contents
1. The increase of the expected annual cash flows..............2
2. What is Sky’s beta and how does it compare with the
industry beta?..................................................................3
, 3. Sky’s cost of equity capital............................................3
5. The calculation of Sky’s weighted-average cost of capital 4
6. The NPV of the investment with 100% equity financing....5
8. The NPV of the investment with using the WACC.............6
9. To what extent does the attractiveness of this investment
depend on the method of finance chosen?..........................6
10. The recommendation to Sky’s management..................7
Bibliography.....................................................................8
Attachments.....................................................................9
Appendix 1.............................................................................9
Appendix 2.............................................................................9
Appendix 3...........................................................................10
Excel tables..........................................................................11
Module assigment Sky
Made by Strategy Consulting
2014
,Business Economics
Module assignment Sky
Commissioned by Stenden University Leeuwarden
Media and Entertainment Management
Module: Strategic Management in the Media
Teacher: Harro Prins
Submission date: 07-04-2014
Authors:
Daphne Bennink 208728
Linda van Duijvenvoorde 236454
Robin van Rossum 218634
Boyan de Boer 225878
Chloë Karsseboom 203955
Table of Contents
1. The increase of the expected annual cash flows..............2
2. What is Sky’s beta and how does it compare with the
industry beta?..................................................................3
, 3. Sky’s cost of equity capital............................................3
5. The calculation of Sky’s weighted-average cost of capital 4
6. The NPV of the investment with 100% equity financing....5
8. The NPV of the investment with using the WACC.............6
9. To what extent does the attractiveness of this investment
depend on the method of finance chosen?..........................6
10. The recommendation to Sky’s management..................7
Bibliography.....................................................................8
Attachments.....................................................................9
Appendix 1.............................................................................9
Appendix 2.............................................................................9
Appendix 3...........................................................................10
Excel tables..........................................................................11
