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!
Hamden Vineyards was founded by two brothers, Harvey and Mel Coltrane, and has been producing wines for over 30 years. Recently, HV invested $450,000 to plant grapes that will be used to make a new variety of wine. The national market for the new variety of wine is estimated to be 1.2 million cases annually with 12 bottles of wine per case. HV plans to roll the distribution of the new wine out over a four-year time horizon, distributing to the Northeast the first year, adding the Mid-Atlantic states the second year, the South the third year, and the Midwest and West the fourth year. The Northeast represents 25% of the national market, the Mid-Atlantic States represents 15% of the national market, the South represents 30% of the total market, and the Midwest and West combined represent 40% of the national market. To encourage wholesalers to distribute the new wine and promote it to retailers, wholesalers will receive a 10% allowance (based on their purchase price). Standard margins in the industry for this type of product are a 20% markup over cost for retailers and an 8% markup over cost for wholesalers. The variable costs for materials and labor associated with producing the new will be $5.50 per bottle. During the first year, Hamden Vineyards plans to host a series of wine tasting in leading wine shops to introduce consumers to the new wine. The cost of the tastings is budgeted at $125,000. The introduction of the new wine will increase fixed overhead by $130,000 for the year. Harvey and Mel agree on the promotional campaign for the new wine, but Harvey thinks that the retail price for the wine should be $16.20 per bottle. Mel, on the other hand, thinks that the price should be set at a level that will ensure a contribution of $85.00 per case. Based on Harvey's plan, what is the contribution per case? Based on Mel's target contribution per case, what is the breakeven market share for the first year?
Define the following terms: Time value of money, Efficient market and Forecasting and demand management
The Lo Sun Corporation offers a 8 percent bond with a current market price of $893.01. The yield to maturity is 9.34 percent. The face value is $1,000. Interest is paid semiannually. How many years is it until this bond matures?
Why do real returns matter more than nominal returns
How much does Sam have to accumulate
Develop a financial plan to evaluate the venture and its viability.
in the chicago board of trades corn futures contract the following delivery months are available march may july
If this plan were carried out, by how much would the WACC change, i.e., what is WACC Old- WACC NEW?
Make a final payoff diagram for a stock and a bond.
A. Suppose your bank account will be worth $15,000.00 in one year. The interest rate (discount rate) that the bank pays is 7%. What is the present value of your bank account today? What would the present value of the account be if the discount rate i..
A company paid dividend of $2.00 per share,and investors believe that the dividend will increase at a constant rate into the foreseeable future.The price of stock is currently $65.00 per share.
Explain After tax Cost of debt and preference stock and analysis calculate and explain the after-tax cost of preferred stock for a company
most firms generate cash inflows every day not just once at the end of the year. in capital budgeting should we
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