Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
You've noticed that due to Covid-19 the soap & cleaning manufacturing industry in Canada has experienced a huge growth, so you and your friend have decided to start a new business in this industry. You've collected the information provided below to make a feasibility analysis of the new business:
Industry Sales Forecast
YEAR
2021
2022
2023
2024
2025
Total Market (in $ thousands)
1,880,000
1,890,000
1,920,000
1,940,000
1,950,000
Your business market share
0.10%
0.11%
0.12%
0.14%
0.20%
Industry Cost Structure
% of sales
COGS
55%
Depreciation
4%
Sales & Marketing Exp.
7%
Administrative Exp.
13%
Considering the following assumptions:
- your business will be able to have the same cost structure as the industry since its first year of operations
- there are no pre-operational losses to be carried forward.
- the tax rate is 28%.
- the business is 100% equity financed.
- the required return on equity (rE) is 18%
- the long-term growth rate is estimated to be 3% (growth after year 5)
- the investment in net working capital and capital expenditures is expected to be as follows:
2020
NWC (in $ thousands)
150
20
40
120
CAPEX (in $ thousands)
300
200
What is the value of the company using the DCF method (PV of FCFs)? (your answer should be in $ thousands).
Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..
This report is specific for a core understanding for Financial Accounting and its relevant factors.
Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.
Briefly describe the major differences between a sole proprietorship and a corporation
Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month
What are the implied interest rates in Europe and the U.S.?
State pricing theory and no-arbitrage pricing theory
Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.
The Effect of Financial Leverage and working capital management
Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.
Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.
Time Value of Money project
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd