Case study description

You are asked to discover information to estimate the actual cost of debt, the cost of equity, the WACC, and the free cash flow of Vista Group Ltd (VGL) during the financial year 2024. You will need  access to the  2024 annual report of VGL,   which is available from https://vistagroup.co.nz/investor-centre. To complete the assignment, you will also need to employ the following inputs and assumptions:

•   The CAPM beta of the VGL stock as traded on the ASX is 1.27.

•   The ASX market risk premium during 2024 was on average 5.55%. This is equal to the difference between the expected market return and the average risk-free rate.

•   VGL’s market value of total debt during 2024 was on average NZ$78 million.

On Canvas you can  find an Excel spreadsheet template.  You are required to use this spreadsheet to develop  answers to the questions  described  below.  You are required to submit only the Excel spreadsheet for marking. Do not submit any Word or PDF report.

You are required to document the source and assumptions that you use in the Excel spreadsheet, under the columns entitled  ‘Source,. Failing to document your source of information will result in penalties. You must  indicate  from where exactly you have discovered each piece of information, that may be from VGL’s 2024 annual report (give the note number  or the page number) or from  other legitimate and trustworthy  sources by providing the URL  links. At the  end of each worksheet there is also a place  to  add  any further ‘Notes’. Under this space document any assumptions that you might need to make to complete the assignment.