Capital expenditure of $155,000 was incurred during last 2 years. Increase in invested capital reduced both IGR and SGR. As sales growth rate was higher than IGR and SGR, firm had to rely on trade credits and trade notes, besides internal accruals and bank notes to finance its cash outflows. Projections for 1996 are based on information provided and other assumptions described in excel sheets viz. all trade notes will be fully paid and trade credit of 10 days is for additional purchases made from April 1, 1996.
Pre paid plans were unusual because of prohibitive pricing (starting at 35 and as high as 75 cents) In 2001 mobile entertainment represented $10 billion and was projected to increase steadily over the next few years. Alliances with MTV, VH1 and Nickelodeon were going to be Virgin Mobile’s main communication strategies to position the brand with potential customers. Alternatives Virgin was considering three pricing options to introduce the
The project would shut down the production for 45 days while the renovations are implemented. The price of polypropylene is GBP675 per ton. The tax rate required for this analysis is 30%. New assets can be depreciated over 15 years on an accelerated basis. Due to the increased production the work-in-process inventory (WIP-inventory) would need to increase by 3.0% of cost of goods.
INTEROFFICE MEMORAND UM TO: FROM: SUBJECT: DATE: MR. JOSEPH GALLI WEI-NUNG YANG STRATEGY FOR TRADESMEN SEGEMNT 9/6/2011 The Black & Decker Corporation should apply sub-branding strategy. With the new name in Tradesman segment, B&D will double their market share of Professional-Tradesmen segment from under 10% to nearly 20% within three years at least and operating income would be projected to increase steadily from under 10% to at least 12%. The B&D is a renowned power tool company and it dominated the Professional-Industrial and Consumer segments. However, B&D didn’t do well in Tradesmen segment and Makita hold the most market share in Tradesmen segment. To improve B&D’s performance in Tradesmen segment, I list three points as follow: New brand imagine Since the buyer of Professional-Tradesmen segment made a living with their tools, B&D should remove the image of using at home rather than on the job.
Executive Summary Fonderia di Torino is considering the purchase of an automated molding machine, the Vulcan Mold-Maker, to replace its current six semi-automated machines running at 90% capacity. By acquiring the Vulcan Mold-Maker, the company will see an increase in cost-effectiveness as the costs associated with labor, taxes paid, training, and health care associated with employees significantly decrease. The initial outlay for the Vulcan Mold-Maker was a total of $1.01m. In order to decide whether to accept the Vulcan Mold-Maker project, a capital budgeting analysis (Figure 3) was conducted by using a WACC of 9.9% to find the net present value of the expected incremental cash flows to the firm. Additionally, IRR and the payback period were also considered.
Wal-Mart reported profits of nearly $15 billion in 2011. At around 2 million employees, a $2 wage increase across the board would create an additional $7.8 billion in labor costs annually (assuming 40 hour work weeks). If we look at the 2011 data, this would shift the net income of Wal-Mart in half. While Wal-Mart could most certainly increase wages, it results in a significant impact So why don’t they? It is clear that customer service is not a priority, or a core competency, of Wal-Mart.
Offer 2: 30% of buyer’s interest gross profit on the product for next 4 years. The buyer, Zbays gross profit margin was 60%. Sales in year one projected to be $12 million and expected to grow 40% per year Offer 3: A trust fund will be set up for next 8 years. At the end of period, Dr Wolf would receive the proceeds (and discount them back to present at 10%) The trust fund called for semi-annual payments for next 8 years of $200,000 (a total $400,000 per year) Annual interest rate for the three options is 10% or 5% semi-annually. Determine a.
Microtech: Strategies to Increase Productivity Microtech North, a knife manufacturing company in Bradford Pennsylvania, was considering relocating its knife company to a new location. On Thursday, it announced that it changed its mind and is now investing 3.7 million back into the company to install robotics so that they can increase productivity and be more efficient (Davies). The increase in the company’s capital investment for technology is an example of an increase in fixed cost because the loan payments for the new machines are expected to last for over a year (Hubbard and O’Brien). In the article, Davies states that due to the new venture into robotics, Microtech will be able to hire 10 more workers in the next year for advance operator positions, in addition to its 22 workers that they currently have. The increase in labor is example of variable costs because the need for labor will change as the firms output changes (Hubbard and O’Brien).
Today, PPG operates in more than seventy countries around the world. (About PPG, 2013) As of the third quarter 2013, PPG reported their net sales of $4 billion, which was up 17% from the previous year (2112). Their adjusted earnings per share were record breaking at $2.44 per share, up 31% over last year with the recent recovery in the economy. Cash and short-term investments were $2.2 billion at the end of the third quarter. PPG anticipated its full-year share repurchases to be at the high end of what they had originally projected.
The Saatchi & Saatchi Company began to demerge and after doing so, made several promises to Wall Street and their investors: to grow their revenue base larger than its market, to convert at least 30 percent of their incremental revenue to operating profit and to double their shares per earnings. The first thing the new CEO, Kevin Roberts (a former senior leader from Proctor and Gamble) did was to visit every office location. He went to all 45 offices around the globe in three months to gather information and understand the individual climate in order to gauge the corporation as a whole. These visits resulted in him putting the Multinational Company into three agency categories: Lead,