It was assumed identical macroeconomic pressures were encountered by RMAG in all scenarios. The forecast horizon is required to capture the short term fluctuations and demonstrate the stability of RMAG as a ‘going concern’. The forecast horizon, as a result of technological and industry pressure, varies between industries due to the nature of their business cycle and operations. (Refer to Spreadsheet plot for comparison between scenarios FH and between industries –Toll Road). The forecast horizon taken for RMAG assumes the development of their most economically lucrative product Human therapeutics (HG) takes “15 years to proceed from the lab to the drug store”.
Zilack Corporation Strategic Alignment Worksheet Accounting and Finance Name: Tabitha Cook Corporate Goal: Double Company Sales | Human Resources | Accounting and Finance | Checklist | | * Ensure staffing requirements are met. * Retain existing staff. * Hire and train new staff. * Raise Strength of Workplace scores to a minimum of 4.0 in all departments. * Plan, organize, lead, and direct the human resources of the company to meet the goal of growing the business by 100%.
The company was launching a new business plan to expand its market share. J.C Penney used this transformation to reach its long-run shareholder values. Ron Johnson and Michael Francis, president of J.C Penney, tried to open a new image of the company. J.C Penney started to launch its new price strategy this year. The company is “slashing prices up to 40% with to keep them that way year round” (Heller).
Executive Summary Memorandum To: Source Selection Board De Havilland Inc. From: Kim Tomar Financial Analyst, Material Subject: Marton Enterprises Inc. as a Supplier for Flap Shrouds and Equipment Bay Doors. Our company has three mandates to get up to 25% discount on all parts that are on the bill of materials, to reduce our vendor base so as to gain from economies of scale and to sign five year, long term contracts with vendors. In light of this we had tried to get a price reduction from our current supplier of flap shrouds and bay doors, Dollard Plastics of Montreal, to no avail. Following an RFQ we received bids from 9 different suppliers with just as many varied prices of the final product. Out of all, Marton
• Consumers who buy Kingsford Charcoal tend to spend 30% more during their store visit. • Two new brand managers with new ideas can shape the future of the brand and the category. Weaknesses • Kingsford reduced media advertising from $6 million in 1998 to $1million in 2001. • Kingsford plant capacity is currently at 80%. It will take two years to expand or three to five years to build new
Research has shown that involving suppliers in the product development process can yield benefits such as improved product costing, faster product development time and more effective, efficient operations. Deere & company initiated the creation of the Skid-Steer machine, a 1000-3000 pound capacity versatile construction site machine, more than 25 years ago, but outsourced the product design and manufacturing to New Holland an independent contractor. The skid-steer loader is supposed to sell more than 60,000 units amounting to $1.2 billion by 2000-2001. Deere & Company plans to triple its market share and they want to take back design and manufacturing of the skid-steer loader from New Holland. Deere & Company wants to improve the design and manufacturing of the skid-steer loader with order winning criteria such as improved product features, product range, delivery and price.
According to the “American Diabetes Association, (2015) “Medicare beneficiaries with high prescription drug costs that put them in the coverage gap (also called "donut hole") get a 52.5% discount on covered brand-name drugs while in the gap in 2014 and a 55% discount in 2015. People will get a 35% discount on generic drugs while in the gap in 2015. Additional savings will occur each year for people in the gap until 2020 when the coverage gap won't exist anymore. Young adults can also get financial assistance on their parent’s insurance plan until the age of 26 as long as the policy covers
These changes will add $1.00 per bottle to the variable cost of sales. Calculate the new break even given the increase in variable costs. After charging $1.00 more per bottle, the company would have to sell 1,600 bottles per day which would be 20% sales loss. 3. To reposition its water as a premium product, Healthy Spring will require an increase in its advertising and promotion budget of $900 daily.
FIVE STAR BEER—PAY FOR PERFORMANCE In June 1997, Tom McMullen (President— Alliance Brewing Group) and Zhao Hui Shen (General Manager—Five Star Brewing Co. Ltd) met to discuss the “pay for performance” systems which Zhao had been implementing at Five Star’s two breweries over the past several months. McMullen needed to determine whether or not these incentive systems were properly designed to ensure that the breweries would produce higher quality beer at progressively lower costs. If not, he needed to consider how he might suggest that these and other systems be changed in order to achieve Alliance Brewing’s cost and quality objectives. FIVE STAR’S ASIMCO CONNECTION The majority owner of Beijing Asia Shuang He Sheng Five Star Brewing Co. Ltd. (Five Star) was the Beijing-based investment group, Asian Strategic Investments Corporation (ASIMCO). The primary shareholders of ASIMCO were Trust Company West, Morgan Stanley—Dean Witter Reynolds and senior management.
Cost of Capital at Ameritrade CAPM Cost of Capital at Ameritrade ● ● ● Introduction to Case Calculate CAPM Calculate WACC Company Background ● ● Ameritrade is formed in 1971 pioneer in the deep-discount brokerage sector. In Mar 1997, Ameritrade raised $22.5 million in IPO ● Company Background ● - Source of revenue from Transaction and Net interest Business Question Joe Ricketts (CEO) is thinking cut cost, invest in advertise or invest in technology - Expect return 30-50% - Expect return 10-15% ● What type of Ameritrade Business? ● Who are Ameritrade’s Competitors ● ● ● ● E*Trade Waterhouse Investor Service Charles Schwab Quick & Reilly Other Information that we have? ● Ameritrade Annual Income, Balance sheet Capital Market return data Ameritrade & Competitors Stock price Stock return from NYSE ● ● ● What do we need to answer question ● CAPM (Capital Asset Pricing Model) ◦ Risk Free Rate ◦ Beta (unleverage) ◦ Risk Premium ◦ Expected Market Return ● WACC (Weighted Average Cost of Capital) ◦ E/V ratio ◦ Re ◦ Rd ◦ D/V What do we need to answer question ● CAPM (Capital Asset Pricing Model) ● WACC (Weighted Average Cost of Capital) CAPM - Capital Asset Pricing Model Ke = Rf + B (Rm-Rf) ◦ Risk free rate ◦ Beta ◦ Expect Market return ◦ Market risk premium (Rm-Rf) CAPM - Capital Asset Pricing Model Risk free rate We pick up 30-years bonds Rf = 6.61% Why? Ameritrade is going to make a substantial investment in technology Ameritrade’s mission is to be the largest brokerage firm worldwide(Long term investment) CAPM - Capital Asset Pricing Model Market Risk Premium Historic Average Total Annual Returns on US government securities and Common Stocks(Exhibit 3) We consider Ameritrade is a large company - in 1997, Ameritrade(NASDAQ: AMTD) raised 22.5 million in an initial public offering