Stealth Sports

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Early in 2020, Pamela Taggart, the recently-appointed CFO of Stealth Sports (a non-publicly traded company), had one overriding task and little time to waste: She needed to estimate a hurdle rate to force some discipline in the decision-making process of the company. Her problem was that, unlike some of the companies she had worked for before, Stealth was not publicly traded. That complicated her job but did not make it impossible. This case is designed to estimate the cost of capital of a private, non-traded company.
Bibliographic citation: ESTRADA J., J. (2021). Stealth Sports. IESE, F-976-E.
Date: 01/10/2021
Author(s): Javier Estrada
Document type: Case
Department: Financial Management
Languages: English
Geographic area: United States
Learning objective Calculation of the cost of capital of a company that does not issue publicly traded stocks and bonds.