The Boeing 7E7
Questions:
1. Please use the capital asset pricing model to estimate the cost of equity. Which
beta and risk-free rate do you use? Why? What is the risk premium?
2. Under what circumstances is the project economically attractive?
3. Should the board approve the 7E7?
Reports in pdf files should be sent to btfazendeiro@fe.unl.pt by midnight of May 13,
2009.
Each report should not exceed 8 pages.
The cover page of the written report should include the following:
Name of the case, name of the teacher, name of the class, names and numbers of all
group members
All groups should be prepared for in-class discussion.