He believes that the premoney valuation of the company should be at least $10 million based on the potential profitability of the company and the successful efforts to date in lining up several key sponsorships with national retailers. You have been hired by Chapin as a consultant to advice on the valuation and how to negotiate with Biddle. Please use the following topics as a GUIDELINE ONLY: 1. How good an investment opportunity is Mindersoft? What are the key strengths and weaknesses of the opportunity and business plan?
Fixed and variable costs should be adjusted to maximize profit • Will is going to need to figure out how much of his product he is willing to offer consumers at different prices. • The demand for this type of product should be researched before setting the price • If there is a high demand for this product, that would help determine selling price • Will has setup a small website to introduce his products selling material where the copyright has lapsed for $10 and copyrighted materials for $15. • In the first six months 1,000 of the older books were sold generating revenue of $10,000 and 2,000 of the copyrighted materials were sol generating revenue of $30,000. • The current market price for books on CD is about $20 for a 500 page book. • It was recommended to Will, by his friend Elsa that he increases the price of his product to allow for additional funds for advertising.
If the sales outlook for the coming three years was only 20,000,000 and B.E. continued producing at the rate of 30,000,000 units, a total of 10,000,000 units would be dumped into ending inventory at the end of each year once again reducing costs of goods sold and falsely increasing income. By the end of year 2013, B.E. Company would have 35,000,000 units sitting in ending inventory taking up space and costing money to store. Once again if the president’s bonus is based off of net income, this situation is the most favorable for a high paying bonus and encourages stockpiling inventory to inflate net income.
Further, the expenditure of $25 million dollars will get an additional gross profit of only $2 million. How with the additional expenditure be recouped? That apart I would like to know how the advertising will position the Graves Enterprises brand. The theme of advertising, the print layout, and the effect that the advertising will have the commercial segment is important. Further I would like to know the co-operative advertising that she intends doing.
Use the “Business Plan Financials Guide” (see: Course Required Files in Week 1) to support your development of the Marketing Budget. 6. Complete the Marketing Budget worksheet for your company. o Hints: The goal of the marketing budget is to help you determine how much it will cost you to reach your market and achieve your sales goals. Hints: When filling out the “Marketing Budget” worksheet in the Excel spreadsheet: o Begin in the current year and complete a marketing budget for the first year of your business.
Complete the quiz on the assigned readings for the week. Internal Competencies. In planning, one component to explore is how an entrepreneurial organization’s internal competencies help to achieve a strategic advantage in the marketplace. In a 250-300 word response, answer the following: What steps/actions would an entrepreneur take to determine whether the entrepreneurial venture has the appropriate internal competencies to achieve competitive advantage? Respond to at least two of your classmates’ postings.
A 20% discount of original price for a period of one week. In the second special sale will offer a 30% discount from its original price per unit. According as remaining inventory the company will be clearance with a 50% and offer free one jean with the purchase. The goal of the proposal is to bring the inventory to the minimum amount available to avoid storage costs and prepare for the upcoming shopping season. The experience with excess inventory event has prompted owners of La Boutique C, to be more careful in buying merchandise after the output has no time.
EC100 REINHARDT CAPITAL BUDGETING: How a business firm decides whether or not to acquire durable real assets In this write-up, I shall explain as simply as is possible (1) how modern business firms decide whether or not to purchase with the firm’s investible funds long-lived assets (land, machines, buildings) that will be used by the firm for more than one period and (2) how they finance these purchases. We shall explore the second question first and then illustrate the first with a numerical example. In the end, we shall explore cool, trick question with which you can annoy people in high finance—your own parents possibly among them. A. WHENCE DOES THE FIRM GET ITS FUNDS, AND WHAT IS THE COST TO THE FIRM PER DOLLAR AND PER YEAR OF SUCH
Dear John and Jane Smith, Presented within this memo, you will find answers to your questions brought up during our meeting. Please take a look and let me know what you decide based on the facts below. John, congratulations on winning your case, now regarding the money you received as part of the settlement; as you said was in the amount of $300,000 and it represented your legal fees. As such this would be treated as ordinary self employment earnings in other words taxable income. Justifiably, since the amount is substantial you are considering some other options.
ENG 215 – English Composition Class Adjunct Professor Dr. Rachel De Luise Assignment # 1 Research Topics with Explanation Submitted by April 17th, 2012 1. Explain the reason for selecting topic one, identify the audience, and provide a preliminary thesis statement. Should taxes on people making over $250,000 a year be changed? Nowadays, income tax gives the strong influence to the improvement of every country. Controlling the tax in the suitable law may give a lot of national benefit.