Key Topics: Cost of capital, debt restructuring, and demergers.

Models Covered: Free Cash Flow to Equity (FCFE) model, asset beta calculation, and weighted average cost of capital (WACC).

Description: The Coeden Co scenario examines the financial implications of selling its hotel properties and the effect on its debt levels, cost of capital, and market value of equity. It also considers an alternative strategy involving a demerger. The analysis uses financial modeling to determine the changes in risk profile and explores how restructuring can impact valuation and cost of equity​.