comments that I have made in the RHS margin. The Boeing 7E7 Team 14 Constantine Brocoum Courtney Delia Stephanie Doherty David Dubois Radu Oprea October 15th, 2009 Contents Objectives 1 Management Summary 1 Cost of Equity 1 Equity Market Risk Premium 1 Beta 2 Risk Free Rate 2 Capital Structure Weights 2 Boeing 7E7 Project Evaluation 4 Circumstances for an economically
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Case #16 The Boeing 7E7 Synopsis and Objectives In 2003, the Boeing Company announced plans to build a new “super-efficient” commercial jet called the “7E7” or “Dreamliner.” This was a “bet the farm” gamble by Boeing, similar in magnitude to its earlier introductions of the 747 and 777 airliners. The technological superiority of the new airframe, as well as the fact that it would penetrate a rapidly growing market segment, were arguments for approval of the project. On the other hand, the
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Introduction In this case Boeing faces a number of challenges in determiningthe viability of bringing forth the 7E7 aircraft series. Aircraft manufacturersbringing forth a new product has to take extra care since a miss in this assessment can place a company in a position to fail the result of huge cash outflows required. Boeing faced stiff competition from French based Airbus and had not brought forth a successful new product in recent years. Since the September 11th attacks travel had taken
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THE BOEING 7E7 Teaching Note Synopsis and Objectives In 2003, the Boeing Company announced plans to build a new “super-efficient” commercial jet called the “7E7” or “Dreamliner.” This was a “bet the farm” gamble by Boeing, similar in magnitude to its earlier introductions of the 747 and 777 airliners. The technological superiority of the new airframe, as well as the fact that it would penetrate a rapidly growing market segment, were arguments for approval of the project. On the other
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- Vishal Prabhakar - Jayaraj Somarajan - Ajay Gnanashekaran - Shafrin Maredia Table of Contents Sl.No 1. 2. 3. 4. 5. 6. 7. 10. 11. Contents Evolution of Project Boeing 7E7 Empirical Data 7E7 Project NPV –DCF Analysis WACC Calculation Payback Period Stock Options @ Risk Analysis Conclusion References Page 1 4 5 7 11 12 22 23 24
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Case #16 The Boeing 7E7 Synopsis and Objectives In 2003, the Boeing Company announced plans to build a new “super-efficient” commercial jet called the “7E7” or “Dreamliner.” This was a “bet the farm” gamble by Boeing, similar in magnitude to its earlier introductions of the 747 and 777 airliners. The technological superiority of the new airframe, as well as the fact that it would penetrate a rapidly growing market segment, were arguments for approval of the project. On the other hand
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* BusinessWeek * BusinessWeek Exchange ------------------------------------------------- Top of Form Bottom of Form Boeing vs. Airbus: It's Getting Ugly The two plane makers are raising the volume of their spat over subsidies. Will the dispute go to the WTO? What's Airbus up to now? On Sept. 6, Chief Executive Noel Forgeard hinted that the European plane maker may soon unveil plans for yet another new aircraft even before the double decker A380 takes its first test flight early next
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RINGKASAN KASUS – BOEING42 Keterpurukan Boeing tampaknya telah mencapai puncaknya pada akhir 2003 dengan skandal seputar kesepakatan Pentagon yang diduga menjadi perilaku yang tidak pantas dan hilangnya dokumen oleh pejabat Boeing. Setelah tujuh tahun di kepala organisasi, Desember 2003 Phil Condit mengundurkan diri. Masalah di Boeing dilaporkan tidak ada habisnya. Harga saham mengalami penurunan sebesar 6,5 persen. Selama bertahun-tahun Boeing dianggap oleh perusahan Amerika sebagai produsen
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Case - Boeing 7E7 1. Background 1.1 General introduction of Boeing Boeing is the world's largest aerospace company and leading manufacturer of commercial jetliners and defense, space and security systems. Boeing is organized into two business units: Boeing Commercial Airplanes and Boeing Defense, Space & Security. According to Boeing’s 2002 Annual Report, the revenues split between its commercial airplanes division and its integrated defense systems division is about 50/50. Boeing has been
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THE BOEING 7E7 Teaching Note Synopsis and Objectives In 2003, the Boeing Company announced plans to build a new “super-efficient” commercial jet called the “7E7” or “Dreamliner.” This was a “bet the farm” gamble by Boeing, similar in magnitude to its earlier introductions of the 747 and 777 airliners. The technological superiority of the new airframe, as well as the fact that it would penetrate a rapidly growing market segment, were arguments for approval of the project. On
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