Sylvan Learning Systems and Childtime Learning Centers: Cost of Capital Case Solution & Answer

This Case is about Entrepreneurship, Finance

Publication Date: 08/28/2002

Quickly Learning Inc. was a private company that developed applications and learning materials mainly for preschool-aged kids. It’s contemplating moving into two new enterprises: starting an early childhood education facility and buying an already established day-care center. Quickly Learning Inc inquired for a firm that provides guidance on these enterprises. Among the team members assessing the suggestions must establish the proper prices of capital (or hurdle rates). He considers whether necessary yields should represent present market prices or real previous prices, and whether to base the calculations on the price of new sources of funding or an average of the prices of present sources.

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