Minimizing the Cost of Capital in Hotel Investments

2017 ◽  
pp. 191-207
Author(s):  
Prashant Das ◽  
Gabrielle Bodenmann
Keyword(s):  
Cost Of Capital ◽  
Optimization Process ◽  
Hypothetical Case ◽  
Funding Sources ◽  
Investment Manager ◽  
The Cost

In this book chapter, we introduce the readers to typical sources of hotel financing using a hypothetical case-study. First, we provide a commentary on various types of funding sources. We provide rationale for why a particular surplus unit specifies certain constraints to an (investment) manager. A discussion is offered on various factors that may lead to a certain mix of financing. We walk the readers through various steps of the optimization process. Finally, we provide a case study on optimizing the funding sources using the SOLVER function in MS Excel.

scholarly journals Regulation and the Cost of Capital in Japan : A Case Study

1996 ◽  
Vol 1996 (556) ◽  
pp. 1-34 ◽  
Author(s):  
John Ammer ◽  
◽  
Michael S. Gibson
Keyword(s):  
Cost Of Capital ◽  
The Cost

scholarly journals CAPITAL STRUCTURE ANALYSIS TO OPTIMIZE THE PROFITABILITY OF MSMES (CASE STUDY ON MSMES HIKMAH IN SIDOARJO, EAST JAVA, INDONESIA)

2019 ◽  
Vol 1 (2) ◽  
pp. 241-250
Author(s):  
Danur Ramadhani ◽  
Agus Sukoco ◽  
Joko Suyono
Keyword(s):  
Capital Structure ◽  
Cost Of Capital ◽  
Weighted Average ◽  
Financial Statements ◽  
Business Owners ◽  
Optimal Capital Structure ◽  
Descriptive Research ◽  
The Cost ◽  
The Capital Structure

This study aims to analyze the capital structure used to optimize profitability in MSME embroidery shoes. This study uses descriptive research with a qualitative approach. The analytical method is used Weighted Average Cost Of Capital (WACC). The techniques of data collection in this research used interview, observation, documentation and triangulation methods. The data that used are financial transaction records and financial statements issued by the company itself. The results showed that UD. Hikmah used the composition of the capital structure consisting of debt of 20%, 80% own capital with a ROE rate of 170%. Optimization results obtained the optimal capital structure composition on the composition of debt 23% and own capital 77%. By generating a level of profitability that can provide a favorable return for business owners, with the highest calculation of ROE that is equal to 173% and the cost of capital to be borne is Rp.18.238.000 every year.

scholarly journals Efficiency of using different lining materials to protect groundwater from leakage of polluted streams

2019 ◽  
Vol 68 (6) ◽  
pp. 448-459 ◽  
Author(s):  
Hany F. Abd-Elhamid ◽  
Gamal M. Abdelaal ◽  
Isamil Abd-Elaty ◽  
Abdelrahman M. Said
Keyword(s):  
Cost Analysis ◽  
Contaminant Transport ◽  
Low Cost ◽  
Base Case ◽  
Hypothetical Case ◽  
High Durability ◽  
Lining Material ◽  
The Cost ◽  
Source Of Pollution

Abstract Groundwater is one of the most important water sources but it is often not far away from pollution. One source of pollution is leakage from polluted streams such as open drains. The effect of open drains on groundwater quality has become an essential issue. This study aims to use different lining materials to minimize the seepage from open drains to protect groundwater. MODFLOW is used to investigate flow and contaminant transport and to evaluate efficiency of different lining materials. A hypothetical case study is used to assess different lining materials such as clay, bentonite, geomembranes and concrete. The results showed that decreasing the conductivities of lining materials reduced the extension of the contaminate. The extension of contaminants was reduced by 43, 89.6, 91.4 and 93% compared with the base case when drains were lined by clay, bentonite, geomembranes and concrete, respectively. Also, cost analysis of lining materials was done to detect the best lining material. Lining using geomembranes reduced contaminant extension at low cost compared with concrete, which reduced contaminant extension at double the cost. This reveals that the geomembranes represent the preferred material to protect groundwater from drain seepage due to its high durability and low cost compared with concrete.

Hydrology, hydraulics and economics: a case study of abstracting water from an estuary

2003 ◽  
Vol 3 (1-2) ◽  
pp. 411-418
Author(s):  
D. Luketina ◽  
D. Hranisavljevic ◽  
S. Clark ◽  
F. Fan ◽  
M. Sahu
Keyword(s):  
Complex System ◽  
Cost Of Capital ◽  
Water Storage ◽  
Complex Task ◽  
Estuarine Water ◽  
Raw Water ◽  
The Earth ◽  
Rotation Of The Earth ◽  
The Cost

Designing a least-cost scheme to drinking water from an estuary is a complex task when the water is to be supplied to a town or city close to the mouth of the estuary since the estuarine water is relatively saline in this region. The raw water intake must be sited to minimise the cost of capital works, which may include increased storage, while maintaining the salinity of water supplied to customers within acceptable limits. This is not a trivial exercise as flow in estuaries, i.e. where the river and ocean meet, is complicated by tides, winds, upstream river inflows, erosion, and the rotation of the earth resulting in a relatively complex system in which salinity can vary dramatically in time and space. In turn, the level of risk (of exceeding acceptable salinity in water supplied to the customer) varies depending upon the estuarine behaviour and factors, such as abstraction location, available water storage, and abstraction practice. Here we show, via a case study, how hydrology, hydraulics and economics must be integrated in order to find a least-cost solution that meets the needs of customers.

scholarly journals The Impact of CSR/ESG on the Cost of Capital: A Case Study of US Companies

2021 ◽  
Vol XXIV (Special Issue 3) ◽  
pp. 536-546
Author(s):  
Agnieszka Piechocka-Kaluzna ◽  
Agnieszka Tluczak ◽  
Pawel Lopatka
Keyword(s):  
Cost Of Capital ◽  
The Cost ◽  
The Impact

scholarly journals The Gordon Growth Model: A Teaching Case

2016 ◽  
Vol 13 (1) ◽  
pp. 23-32
Author(s):  
Jerome Duncan ◽  
Seth C. Anderson ◽  
Sherrell Price ◽  
Cassandra Thomas
Keyword(s):  
Growth Model ◽  
Cost Of Capital ◽  
Share Price ◽  
Capital Asset Pricing ◽  
Graduate Course ◽  
Internal Factors ◽  
Asset Pricing Model ◽  
The Cost ◽  
The Impact

This case illustrates how the Gordon Growth Model is employed to estimate the value of a firm’s stock.  The model determines the value of stock based on dividends, growth rate, and the cost of capital. The Capital Asset Pricing Model (CAPM) is employed to calculate the cost of capital.  Both economic analysis and ratio analysis are used to examine the impact of external and internal factors on share worth.  The case discusses why the market share price may vary from an estimation of its worth. This case study can be used in an Introduction to Investments course, an Advanced Investments course, or a first level MBA graduate course.

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