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discussion on3 and two

D1: Proterra Picking Up Speed

Background:

This discussion addresses the following Module Outcomes:

• Evaluate expected portfolio returns on shareholder value. (CO4)
• Evaluate systemic risk by applying a Beta coefficient. (CO4)
• Evaluate firm and project value using a weighted average cost of capital

(WACC). (CO2, CO3, CO4)
Proterra was founded by Dale Hill in 2004 with a vision to design and manufacture
world-leading, advanced technology heavy-duty vehicles powered solely by clean
domestic fuels. After launching a first successful fleet of alternative fuel buses in
the 1990s, Proterra focused on developing the ‘bus of tomorrow.’ Proterra Inc. also
designs and manufactures heavy-duty vehicles including EcoRide, a battery
electric and zero-emissions bus, and Proterra Catalyst, an electric transit vehicle.
The company manufactures a TerraFlex Energy System that enables customers to
select amount and type of energy storage to meet specific route requirements, plus
TerraVolt fast-charge batteries, TerraVolt extended range batteries, an on-route
charge station and in-depot charging services. It offers financing solutions, route
simulation analysis, battery lifecycle management, and standard warranty services
(Proterra, 2015). It serves customers throughout the United States. The company is
privately owned, but is in the process of becoming a public corporation. With this
expectation, the firm’s chief executive officer (CEO) has asked for determination
of which of two companies appears to be a better peer to compare itself against,
New Flyer Industries, Inc. (a Toronto-based firm), or Tesla. Tesla Motor Vehicles
designs, develops, manufactures, and sells high-performance fully electric vehicles
and stationary energy storage units similar to certain Proterra products. Tesla
Motors has subsidiaries in North America, Europe and Asia, with the primary
purpose of these subsidiaries being to market, manufacture, sell and/or service their
vehicles (Tesla Motors, 2016). New Flyer was founded in 1930, and is now the
largest transit bus and motorcoach manufacturer and parts distributor in North
America with fabrication, manufacturing, distribution and service centers in
Canada and the United States. It is North America’s heavy-duty transit bus leader
and offers clean diesel, natural gas, diesel-electric hybrid, electric-trolley and
battery-electric. Information regarding Tesla and New Flyer is given here, for your
use in comparing these firms.

Tesla versus New Flyer

Discussion Prompt:

In this discussion, assume that you are the finance manager for Proterra and you
have been asked to provide an analysis of the following issues, as the firm
develops benchmarks for its cost of capital (WACC) estimates. The firm’s CEO has
instructed you to use the pure play approach to estimate its WACC cost of capital,
and has chosen Tesla Motors (ticker symbol TSLA) and New Flyer (ticker symbol

Significance Measure

T
S
L
A

N
FI

Total Market Value of all outstanding shares. Market capitalization

3
3.
6
3
B

1.
8
3
1
B

Number of outstanding shares currently held by all shareholders.

Outstanding
shares of stock

1
4
7.
2
8

M

5
9.
7
4
2

M

A Beta coefficient indicates the systemic risk that an asset has relative
to an average asset. A risk-free asset has a Beta of zero. Beta 1.28 0.16

The return the firm must earn on its existing assets to maintain the
value of its stock, and the required return on any investments by the
firm that have essentially the same risks as existing operations.

WACC 9.03%8.34

PE ratio divided by expected future earnings growth (after multiplying
the growth rate by 100). PEG Ratio 18.470.5

A measure of profit per dollar of assets. ROA -7.04%6.26%

A measure of how the stockholders fared during the year. ROE -113.20%13.21%

A measure of how much investors are willing to pay per dollar of
current earnings. Higher PEs are often taken to mean the firm has
significant prospects for future growth.

P/E Ratio -29.1725.3

Ratio of Net income to sales. Profit Margin -23.91%-3.83%

NYI.TO) as possible representative peers (Korosec, 2015). You will deliver your
analysis in the form of a memo

(Links to an external site.)
, or formal communication addressed to the firm’s CEO. In this discussion, you are
to present this memo in which you:

Tasks:

a. Using the information provided here and speaking of Finance Director of
Proterra, brief the firm’s CEO, analyzing:

B. Analyze the relative applicability or inapplicability of utilizing these firms as
peers to evaluate Proterra’s likely cost of capital, given what you know about
Proterra, Tesla and New Flyer, and the lessons of Capital Market History.

C. Analyze problems in using an SML approach in determining Proterra’s cost
of capital.

Post two additional replies to classmates, offering critical analyses and comments
relating to their determinations and evaluations of Proterra’s utilization of Tesla as
a peer, and problems in the overall approach of evaluating cost of capital using a
WACC. Please cite sources of additional research examine areas where you do and
do not believe that your classmates’ statements make optimal use of assigned
readings, or could otherwise include additional considerations.

Responses should comprise 200–600 words.

References

Bloomberg. United States rates and bonds

(Links to an external site.)
.

Federal Reserve. (2016). Federal Reserve economic data

(Links to an external site.)
.

Korosec, K. (2015). This startup is gearing up to be the Tesla of electric buses

(Links to an external site.)
. Fortune Magazine.

Proterra. (2015). About Proterra

(Links to an external site.)
.

Securities and Exchange Commission. (n.d.) SEC.gov home

(Links to an external site.)
.

Tesla Motors. (2016). Tesla Motors, Inc. 2016 annual report

(Links to an external site.)
.

Yahoo. (n.d.) Yahoo finance

(Links to an external site.)
.

Consult the Discussion Posting Guide for information about writing your
discussion posts. It is recommended that your write your post in a document first.
Check your work and correct any spelling or grammatical errors. When you are
ready to make your initial post, click on the “Reply”. Then copy/paste the text into
the message field, and click “Post Reply.”

To respond to a peer, click “Reply” beneath her or his post and continue as with an
initial post.

Evaluation

This discussion will be graded using the discussion board rubric. Please review this
rubric, located on the Rubrics page within the Start Here module of the course,
prior to beginning your work to ensure your participation meets the criteria in place
for this discussion. All discussions combined are worth 20% of your final course
grade.

discussion on3 and two

D1: Proterra Picking Up Speed

Background:

This discussion addresses the following Module Outcomes:

Evaluate expected portfolio returns on shareholder value. (CO4)

Evaluate systemic risk by applying a Beta coefficient. (CO4)

Evaluate firm and project value using a weighted average cost of capital (WACC). (CO2, CO3, CO4)

Proterra was founded by Dale Hill in 2004 with a vision to design and manufacture world-leading, advanced technology heavy-duty vehicles powered solely by clean domestic fuels. After launching a first successful fleet of alternative fuel buses in the 1990s, Proterra focused on developing the ‘bus of tomorrow.’ Proterra Inc. also designs and manufactures heavy-duty vehicles including EcoRide, a battery electric and zero-emissions bus, and Proterra Catalyst, an electric transit vehicle. The company manufactures a TerraFlex Energy System that enables customers to select amount and type of energy storage to meet specific route requirements, plus TerraVolt fast-charge batteries, TerraVolt extended range batteries, an on-route charge station and in-depot charging services. It offers financing solutions, route simulation analysis, battery lifecycle management, and standard warranty services (Proterra, 2015). It serves customers throughout the United States. The company is privately owned, but is in the process of becoming a public corporation. With this expectation, the firm’s chief executive officer (CEO) has asked for determination of which of two companies appears to be a better peer to compare itself against, New Flyer Industries, Inc. (a Toronto-based firm), or Tesla. Tesla Motor Vehicles designs, develops, manufactures, and sells high-performance fully electric vehicles and stationary energy storage units similar to certain Proterra products. Tesla Motors has subsidiaries in North America, Europe and Asia, with the primary purpose of these subsidiaries being to market, manufacture, sell and/or service their vehicles (Tesla Motors, 2016). New Flyer was founded in 1930, and is now the largest transit bus and motorcoach manufacturer and parts distributor in North America with fabrication, manufacturing, distribution and service centers in Canada and the United States. It is North America’s heavy-duty transit bus leader and offers clean diesel, natural gas, diesel-electric hybrid, electric-trolley and battery-electric. Information regarding Tesla and New Flyer is given here, for your use in comparing these firms.

Tesla versus New Flyer

Significance

Measure

TSLA

NFI

Total Market Value of all outstanding shares.

Market capitalization

33.63B

1.831B

Number of outstanding shares currently held by all shareholders.

Outstanding shares of stock

147.28M

59.742M

A Beta coefficient indicates the systemic risk that an asset has relative to an average asset. A risk-free asset has a Beta of zero.

Beta

1.28

0.16

The return the firm must earn on its existing assets to maintain the value of its stock, and the required return on any investments by the firm that have essentially the same risks as existing operations.

WACC

9.03%

8.34

PE ratio divided by expected future earnings growth (after multiplying the growth rate by 100).

PEG Ratio

18.47

0.5

A measure of profit per dollar of assets.

ROA

-7.04%

6.26%

A measure of how the stockholders fared during the year.

ROE

-113.20%

13.21%

A measure of how much investors are willing to pay per dollar of current earnings. Higher PEs are often taken to mean the firm has significant prospects for future growth.

P/E Ratio

-29.17

25.3

Ratio of Net income to sales.

Profit Margin

-23.91%

-3.83%

Discussion Prompt:

In this discussion, assume that you are the finance manager for Proterra and you have been asked to provide an analysis of the following issues, as the firm develops benchmarks for its cost of capital (WACC) estimates. The firm’s CEO has instructed you to use the pure play approach to estimate its WACC cost of capital, and has chosen Tesla Motors (ticker symbol TSLA) and New Flyer (ticker symbol NYI.TO) as possible representative peers (Korosec, 2015). You will deliver your analysis in the form of a memo

 (Links to an external site.)

, or formal communication addressed to the firm’s CEO. In this discussion, you are to present this memo in which you:

Tasks:

Using the information provided here and speaking of Finance Director of Proterra, brief the firm’s CEO, analyzing:

Analyze the relative applicability or inapplicability of utilizing these firms as peers to evaluate Proterra’s likely cost of capital, given what you know about Proterra, Tesla and New Flyer, and the lessons of Capital Market History.

Analyze problems in using an SML approach in determining Proterra’s cost of capital.

Post two additional replies to classmates, offering critical analyses and comments relating to their determinations and evaluations of Proterra’s utilization of Tesla as a peer, and problems in the overall approach of evaluating cost of capital using a WACC. Please cite sources of additional research examine areas where you do and do not believe that your classmates’ statements make optimal use of assigned readings, or could otherwise include additional considerations.

Responses should comprise 200–600 words.

References

Bloomberg. United States rates and bonds

 (Links to an external site.)

.

Federal Reserve. (2016). Federal Reserve economic data

 (Links to an external site.)

.

Korosec, K. (2015). This startup is gearing up to be the Tesla of electric buses

 (Links to an external site.)

. Fortune Magazine.

Proterra. (2015). About Proterra

 (Links to an external site.)

.

Securities and Exchange Commission. (n.d.) SEC.gov home

 (Links to an external site.)

.

Tesla Motors. (2016). Tesla Motors, Inc. 2016 annual report

 (Links to an external site.)

.

Yahoo. (n.d.) Yahoo finance

 (Links to an external site.)

.

Consult the Discussion Posting Guide for information about writing your discussion posts. It is recommended that your write your post in a document first. Check your work and correct any spelling or grammatical errors. When you are ready to make your initial post, click on the “Reply”. Then copy/paste the text into the message field, and click “Post Reply.” 

To respond to a peer, click “Reply” beneath her or his post and continue as with an initial post.

Evaluation

This discussion will be graded using the discussion board rubric. Please review this rubric, located on the Rubrics page within the Start Here module of the course, prior to beginning your work to ensure your participation meets the criteria in place for this discussion. All discussions combined are worth 20% of your final course grade.

discussion on3 and two

Discussion: Workplace Culture

A word that has become increasingly used and misused in the workplace is culture. However, culture is more than just “differences” or “adapting” to a different world. A culturally diverse landscape has increasingly become much more commonplace than the homogeneous workplace of even the late 20th century. This last discussion will explore the concept and role of culture as it pertains to the distributed workplace.

Initial Post

As the Organizational Behavioral Specialist in your company, you have been tasked with developing a report on how the cultural landscape within your organization has impacted the workplace. In your report, include the changes or modifications you will implement to how your organization is currently managed in this new world we live in.

Post your initial response by Wednesday, 11:59 pm ET.

Response Post

Read through your two of your peers’ solution plans to respond to. Then, compare your plans with each of theirs, and discuss how you may either implement one of their suggestions or discuss how you might convince them to implement one of yours.  Your response is due by Sunday, 11:59 pm ET.

Evaluation

It is important that you review the Discussion Rubric and read the Discussion Posting Guide. These documents lay out the basis for how you should engage in discussions and how you will be evaluated.

All discussions combined are worth 20% of your final course grade.