Activity Description

In this activity, you will meet with two other Airbnb employees for lunch and discuss a project idea to enter the real estate market and build properties for Airbnb. Decide on the cost of capital and whether it's a good idea financially.

The estimated time to complete the activity is $10-15$ minutes. You should start when you have enough time to critically think through the scenario. However, if you need to exit the activity before completion, you will return to where you left off when you re$-$enter.

Learning Objectives

After completing the activity, you will be able to:

LO $1$ Understand the cost of equity and cost of debt

LO $2$ Calculate the cost of equity and cost of debt

LO $3$ Assess the weighted average cost of capital

Evaluation and Scoring

You will be asked to respond to a variety of questions as you complete the activity, and your responses may impact both your score and what happens next.

You will not have the ability to go back and change your answer, so consider each answer option carefully.

Scoring is calculated as follows:

Points are received based on the answer you select for each question, and questions are tied to multiple scoring categories associated with the learning objectives.

Your scores for each category are based on the total number of points you earn for the associated questions.

You will receive one final activity score at the end of the activity that combines your results from each category.

Your instructor has assigned a total point value for this assignment. Your assignment grade is calculated based on the final percentage score you earn at the end of the activity.