ISSN: 2045-0621
Online from: 2011
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| Title: | High rise in Ho Chi Minh City |
|---|---|
| Author(s): | Sundar Venkatesh (Based at the AIT Extension and School of Management, Asian Institute of Technology, Khlong Luang, Thailand) |
| Citation: | Sundar Venkatesh, "High rise in Ho Chi Minh City", Emerald Emerging Markets Case Studies Collection, (2013) |
| Keywords: | Capital budgeting, Cost of capital, Emerging markets, Property management, Real estate industry, Vietnam |
| Article type: | Case study |
| DOI: | 10.1108/20450621211312947 (Permanent URL) |
| Publisher: | Emerald Group Publishing Limited |
| Acknowledgements: | Disclaimer. This case is written solely for educational purposes and is not intended to represent successful or unsuccessful managerial decision making. The author/s may have disguised names; financial and other recognisable information to protect confidentiality. |
| Abstract: | Title – High rise in Ho Chi Minh City. Subject area – The case covers capital budgeting practice in a real estate company in Vietnam. Study level/applicability – The case is ideally suited for participants in MBA, Executive MBA, and Masters in Finance programmes. It can be taught near the end of a course on corporate finance/financial management. It can also be taught as an advanced topic in financial management courses. Case overview – A real estate company in Vietnam has prepared a capital budget for, what it claims is, a 600 billion VND project. The weighted average cost of capital used by the company is 10.64 percent. An analyst in a consulting company is asked to thoroughly review the capital budget of what appears to be a project that is too good to be true. Lending rates in Vietnam at this time were around 15 percent. Expected learning outcomes – Participants will learn how to correctly apply the principles of computing: net after tax cash flows from a project; and weighted average cost of capital, particularly in the context of real estate companies. Supplementary materials – Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes. |