Case 13: Royal Mail -What is going on with Hillary Hunt and Royal Mail? Discuss relevant background information and the key issues facing Royal Mail.Why is it important to estimate a firm’s cost of capital? What does it represent? Is it set by investors or by managers? Who or what determines the cost of capital?What do you think of Kyle Brooks estimate of the WACC? Identify and explain any errors that you feel Kyle Brooks made.Re-estimate the WACC for Royal Mail & the Comparable Firms (Submit the response to Question 4 in Excel)Are the estimates of the WACC for comparable firms helpful to Hillary Hunt? Why?

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