Q-1 What valuation(s) can we place on the business? What method(s) did you use to arrive at the valuation(s)? Valuation Based on Discounted cash Flow Discounted Cash Flow Paint Pen Value using this model is $8.17M. The WACC used for discounting cash flows was 16%. We had made the following assumptions about revenues projections which were based on our growth strategy: 15% growth rate in FY-1997R 17% growth rate in FY-1998E 20% growth rate in FY-1999E 25% growth rate in FY-2000E
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Case Background Classic Pen Company had been the low-cost producer of traditional BLUE pens and BLACK pens. They had been thinking to extend their product line into new products that offer premium selling price. Consequently‚ five years earlier they introduced RED pens‚ which were sold at 3% premium price. A year back they introduced PURPLE pens‚ which sold at 10% premium price. Though the new products seem profitable‚ there has been a dip in the overall profitability and the new products are
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ACC 341 Classic Pen Case Assignment You should hand in one page of analysis and two sets of supporting calculation. The first supporting calculation is an ABC system for Classic Pen‚ constructed by filling in the blanks in the following table. First allocate the total expenses in each row to the various activities‚ based on information in the case. Then choose a cost driver and calculate the rate per unit of the cost driver. Activities Schedule & Handle Production Runs Set up Machines
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Classic Pen Activity-Based Costing Analysis Executive Summary By using the volume based costing system‚ Classic Pen appears to be profitable and making a good return on sales of blue‚ black‚ red‚ and purple pens. The percentage of return on sales of all four colors of pens seems to be no less than 17%. Once the traditional income statement is analyzed‚ the indirect costs are lumped together in the general cost pool titled “overhead”; these costs should be broken down into specific cost pools.
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Design Specification: The Pen Mark Wild 200907556 57017 Nathan Brown * Contents 1.0 Introduction 3 1.1 Background 3 1.2 Product Introduction 3 2.0 Product description 5 2.1 Product 1 5 2.2 Product 2 6 2.3 product 3 8 2.4 Product 4 9 2.5 Product 5 10 3.0 Product Comparison 12 3.1 Introduction 12 Comparison: 12 Advantages 12 Disadvantages 13 4.0 Product Design Specification (P.D.S) 15 Product Design Specification for a Pen: 15 4.1 Operation/Performance
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Classic Pen Co. Case In the past Classic Pen Company had been the low-cost producer of black and blue pens and had profit margins over 20% of sales. Over the last five years Pen Co. decided to start producing red and purple pens. They require the same basic production technology but can be sold at 3% and 10% premium selling prices. Sales Manager Dennis Selmor is just seeing the financial results and is not happy with the numbers. The first issue that Pen Co. is facing is their decline in
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Report on Luna Pen case PA major 0420830 Lee Joo-Hyun Q1. If you were in Erika’s position‚ what steps might give you the best chance of achieving your goals? First of all‚ I think it’s rather dangerous to prepare negotiation plan solely based on stereotype of specific race/nationality. But still it’s foolish to ignore cultural difference. Since negotiation counterpart Feng is not from mainland China but from Taiwan‚ I believe there would be little or no disadvantage of Erika being female
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CLASSIC PEN COMPANY: DEVELOPING AN ABC MODEL REVISED PRODUCT COSTS FOR THE FOUR PENS‚ BASED ON THE ACTIVITY INFORMATION COLLECTED BY DEMPSEY Cost centres under ABC Indirect labour=$ 20‚000 40% *20‚000=8‚000 Total indirect labour=$ 28‚000 Computer expenses=$ 10‚000 Machine expenses= $ 8‚000+ $ 4‚000+ $ 2‚000=$ 14‚000 Cost estimates/allocation under ABC Activity Indirect labour Computer expenses Machine expenses Total Activity rate Handle production runs 50% 14‚000 80% 8‚000
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User’s Guide for the Nokia Digital Pen (SU-1B) 9356642 Issue 1 DECLARATION OF CONFORMITY We‚ NOKIA CORPORATION declare under our sole responsibility that the product SU-1B is in conformity with the provisions of the following Council Directive: 1999/5/EC. A copy of the Declaration of Conformity can be found at http://www.nokia.com/phones/declaration_of_conformity/. Copyright © 2003 Nokia. All rights reserved. Reproduction‚ transfer‚ distribution or storage of part or all of the contents in this
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Fulfilled heart An experience which taught me how to value life at its fullest‚ the day when I was informed about this activity I was actually in doubt if I would go or not; however‚ there was that feeling that pushes me to join. Then‚ the day had come‚ it was Friday afternoon where I packed my things and counted myself in. As we walked along the road towards the village‚ I have thought of those things that I left especially school works‚ but I made up a decision to let go of it for a while because
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