Atlantic Computer, Inc., once the largest player in the overall computer industry, has been competing in the overall server market for 30 years by providing large enterprise customers with high-end performance servers, called Radia. Focusing on customer intimacy and product differentiation, Altantic Computer, In. and its Server Division have a good reputation for selling high-quality products with responsive post-sales assistance. Yielded by the Internet and the proliferation of applications in the late 1990s, there is an emerging trend of low-end, basic server systems. The low-end basic servers market is estimated to expand with about 36% compound annual growth rate through 2003.
With our new estimate of the cost of capital, Nike’s stock has been re-evaluated in the Discounted Cash Flow valuation. Lastly, this report uses the Multiple Valuation to compare Nike with five of its competitors. Our conclusion is that Nike’s cost of capital should be 9.91% and in 2001 Nike’s price should be $51.76, compared to the current market price of $42.09. Therefore, we suggest that Nike should be a good investment. 1.
Netscape purchased the rights to the code of Mosaic, offered their advanced program for free and penetrated the Web Browser market up to 75%. They expected to earn profits on the corporate side of the market which would be marketing their products to consumers using and purchasing Netscape technologies. The internet software market was rapidly developing itself in the mid-nineties, creating brand new opportunities for Software companies. These opportunities attracted more competitors in a short period of time, increasing risk for Netscape substantially. Value Netscape Using How fast does Netscape have to grow on an annual basis over the next 10 years to justify the $28 offer price?
GE’s strategy is to achieve 75% of its earnings from its industrial business by 2016. The production of any service or commodity is considered an industrial process, with infrastructure being well developed assets. Also, another shift by GE is underway to rede ploy the company’s investments away from “ non-core” assets such as media, plastics and insurance to higher growth, higher margin business in oil and gas, power, aviation and health care. Since the announcement of the sale, GE shares were trending higher up 14% to $ 26.24 per share. Shares closed at $26.61 since rumors first surfaced about sales.
It is considered to be a mature market and its growth is projected at 1-2% per year. The major players are Sherwin-Williams,Benjamin Moore, PPG Industries and they constitute 60% of sales in this segment. Due to heavy competition in this segment, it would necessary to retain and expand the market share to continue make profits. The market and values can be classified as per exhibit1. DFW is estimated to contribute 60% of market, wherein DIY buyers account for 70% in DFW and 90% in non DFW area.
Decision statement UST, Inc. must select a capital structure that will maximize market value of the firm. The decision is to leverage the firm up to $1 billion for a stock buyback program or to continue at relatively no debt. If the decision is to lever up, what is the optimal capital structure? Analysis Description: In order to determine if UST should go ahead with the recapitalization plan and what their recommended capital structure should be, the first step is to evaluate the business attributes and risks of UST for credit analysis. Next, the future growth of UST will be assessed.
The current ratio was 3.6 on February 29, 1988which mean that it has plenty of cash to cover any of its current liabilities. Moreover, Interco’s capitalized leases were 19.3%. The company was financially “overcapitalized”. When looking at the company collectively, Interco also looks healthy, with sales increasing 4.04% in 1987 and 13.4% in 1988.Growth in earnings moved Interco further toward its goal of a 14-15% return on equity: 1988’s ROE of 11.7% was up from 9.7% in fiscal 1987. However, if closer examination is undertaken, it is clear to see that the general retail and apparel businesses are struggling while footwear and furniture have been flourishing.
These benefits are often referred to as arising from synergy which accrues to the shareholders of the target as well as to those of the bidder. VF Corporation is offered something in excess of what they perceive to be the current value of those shares. In spite of the eurozone financial crisis, VF’s revenues rose by 20 per cent in constant dollar terms in Europe, while sales in Asia surged 43 per cent. This is the right time to take the Timberland to the next level, with expected 2011 revenues of $1.6bn, over half of which are generated internationally. For the full-year 2010, Timberland reported revenue of $1.4bn, an increase of 11.2% over the prior year and up 11.7% on a constant dollar basis.
According to the recent annual report published by the company, its group sales in 2009 are found to be 59.4 billion euro (Tesco, n.d.). Business Strategy Tesco’s well established and consistent business strategy has enabled it to strengthen the core UK business and expand into new markets successfully. Tesco’s business strategies are mainly focusing on huge domestic market of financial services, telecoms and non-food. One of the main objectives of Tesco’s business strategy is to create sustainable long term growth and according to the company this could be achieved by expanding into global market. The company initially focused on Asia and central Europe.
This indicator is increasing dramatically by almost 11 days in two years, because of increase of Collection and Inventory days by 16 and minor increase of Payables days by 5 (Exhibit 2 and 3). The change in Working Capital (Exhibit 4) very clearly presents the greater increase of receivables than payables, which means that the company pays faster than its customers pays to the company. Therefore, additional source of financing should be found. Further, it is worth mentioning that debt-to-equity ratio increased in this period from 0.82 to 2.65. As a result, it is very easy to understand that the main source of financing the operations of the company are loans and other type of debts (Exhibit 5 and 6).