Instructor Spreadsheet to accompany product W25570.

On November 4, 2020, the group chief financial officer of Domino's Pizza Enterprises Limited was tasked with determining the cost of capital in preparation for the corporate response to the COVID-19 pandemic. In planning for 2021, the company would need to make considerable investments throughout its franchises in Australia, New Zealand, Japan, and Europe. The cost of capital would be integral to these investment decisions. In the previous year, Domino's Pizza Enterprises Limited had made A$98.9 million in investments, so the difference of a few per cent in capital costs could mean a swing in millions of dollars in expenditures. The chief financial officer had all background information including balance sheets, income statements, cash flow statements, common stock data, financial ratios, market return data, peer firm data, and an itemized list of debt obligations. Based on this information, he had to derive the company's cost of capital using a weighted average cost of capital methodology.

Student Spreadsheet for Case W25568

In May 2018, a China-born entrepreneur living in Canada was at a seaside market in Qingdao, China, inspecting inexpensive pearls. She wondered whether pearls presented a good market opportunity in the West. At markets in China, she consistently found cultured pearls that would cost far more in Canada. This experience led her to wonder whether or not it was feasible to sell pearls on a wholesale basis in Canada, or perhaps through one of many retail options. Or was there a reason why pearls-such a timeless product-did not present more of a dynamic market opportunity in the West?