This new specific purpose design with higher torque will also cost much more to manufacture, approx $665 per motor. It will be priced at $1045, leaving a smaller margin than any other motor DMC manufactures. 2. Assuming same retail price, customer would pay $1,045 plus usage costs of 60*$125 = $7,500 so grand total of $8,545 over 5 years. Persuade Bridges that test results are weighted too heavily on starting torque: 1.
Home Depot Valuation Analysis The group calculated a per share valuation of $42.21 for Home Depot’s stock. This required certain assumptions regarding various growth rates, and based upon a sensitivity analysis, a declining sales growth rate is anticipated up to 2011. By this point Home Depot’s store expansion program will slow down, if not cease all together, due to market saturation. The inclusion of a maximum constant sales growth rate of 5% seemed to be a good benchmark for Home Depot. While this is a bit aggressive, we feel that as expansion wanes same store sales will increase marginally from the projected 3.5% growth primarily due to the strength of the brand.
Moving to a 10 oz. aerosol can and using suggest retail price of $4.25 bringing the price per ounce to $.43 making it much more competitively priced with in the market. (See appendix C for average and high/low shaving product pricing). 3. Cost of Goods Sold for the 10oz.Soft and Silky shaving gel ($.29) is significantly less than its competitors Gillette and S.C. Johnson (See Appendix C-Pricing) 4.
The capital raised from initial public stock offerings had an estimated amount around $13 billion in the 4th quarter of the year 1995: an almost $7 billion dollar increase from the 4th quarter of the previous year (1994). With the knowledge that underwriters tend to underprice IPO’s, it is safe to say that with the increase in offerings in 1995, the price per share rage should be above $10 to $15. The company gained 2.2 million at 11.5% in debt to the Massachusetts Industrial Finance Authority to finance engineering and design improvements. Repayment of the debt consisted of principle payments of $50,000 in 1995, $75,000 in 1996-1998, $100,000 in both 1999 and 2000, and after that it was required that the balance be paid off. Boston Beer also entered into a $14 million line of credit with Fleet Bank, allowing borrowing at an interest rate equal to 8.75%.
This situation happened because of the increasing sales of fiscal 2007 ($90,837) that they were able to pay back $1749 million debts. As we know this cannot happen annually, therefore, this is another extraordinary item. 4. In the fiscal year 2006, the goodwill of the Home Depot Company was $3286 million, but in 2007 it was $6314 million, which increased almost 50%.
I was surprise to see that this was the only region that was using 4 out of 5 recruiting methods. Since there is a budget, I would recommend too stay away from as much media use unless a specific hiring event is coming up. As we all know media advertising can use up all of the budget before you know it. With that being said, the cost for Job Services, Employee Referrals, & Posting to Company’s Job Board - would be the most cost effective and tend to generate a higher retention and low turnover rate. The Eastern Washington region is only using three out of five recruiting methods.
Managerial Finance FI515_W5_Project 11 – 7 You have been asked by the president of your company to evaluate the proposed acquisition of a new spectrometer for the firm’s R&D department. The equipment’s basic price is $70,000, and it would cost another $15,000 to modify it for special use by your firm. The spectrometer, which falls into the MACRS 3-year class, would be sold after 3 years for $30,000. Use of the equipment would require an increase in net working capital (spare parts inventory) of $4,000. The spectrometer would have no effect on revenues, but it is expected to save the firm $25,000 per year in before-tax operating costs, mainly labor.
It continued to appreciate throughout the first nine months of 2007, hitting a 10-year high against the dollar in October 2007. By late 2007, it is recorded as $1=₩918 only. The dollar had fallen in value against the won, making Hyundai and Kia vehicles, more expensive in the United States. This means that vehicles sold in the U.S. for dollars are recorded at a lower value when translated back into won, which has hurt the financial performance of both companies. For Hyundai, the annual net profit of the company in 2005 was about ₩2349billion, but in 2006, despite
These two lines were seeing declining revenues and operating margins,except in 2006, when both lines increased their margins. Divesting the snackbusiness was a correct decision, since it was only producing net profits of $3 million,which would not help the business to increase its shareholders’ wealth. Plus, thecompany received a $70 million after-tax gain, more than 22 times the current netprofit. Selling its direct sales business was not a good decision, since it was stilldrawing a 27% profit margin and income of $54 million. The business compliments its current household and body care line within Sara Lee International.
It resulted in a wholesale cost of $9.20 per unit and a retail price of $18.50. Most Fisher Price toys were usually under $5.00 retail and other competitor merchandises were more expensive. The company knew that retailers and their current consumers would not support the higher marked product. When analyzing this situation, one must first look at the internal strengths. The Fisher Price brand is one of the best known brand names and it scored 75% on the brand awareness in the a survey.