weber inc Price-earning ratio 4 30 Shares outstanding 48‚000 160‚000 Earnings 360‚000 720‚000 a) What will EPS of Weber Inc. be after the merger? Merger for 3/4 of weber. EPS =$720‚000 + $360‚000/[160‚000 + (3/4) × 48‚000]= $5.51 b) What is the stock price of Weber Inc. before the merger? Stock price = PE ratio × EPS = 30×$720‚000/160‚000 = $135 c) What will the PE ratio be if the NPV of the acquisition is zero? The market price of Weber
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Ajinkya Parab Abhinav Sehgal (068) (120) (122) (230) The Problem Solenergy was committed to cut costs PVT’s prices are significantly higher than competitors Solenergy’s evaluation of recent proposal had not been published yet; but if it were true‚ Morgan (chief engineer) would be difficult to convince Reasons for unfavorable evaluation of PV technologies by Greg Morgan Prices offered by PVT are significantly higher than competitors( in the range of $10‚000-$2 Alternative course of
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1 In words Newark General Hospital’s $100‚000 cost variance indicates that realized cost was much greater than expected. D. Calculate and interpret the volume and price variance on the revenue side. Volume Variance = Flexible Revenues – Static Revenues = 4.8 – 4.7 = 0.1 Price Variance = Actual Revenues – Flexible Revenues = 4.5 – 4.8 = -0.3 These variances tell that higher than expected volume should have resulted in revenues being
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one or the other. Coach and Gucci‚ for example‚ are known mostly for shoes and accessories while Polo and Armani are high-end apparel. Burberry has positioned itself well‚ somewhere in between‚ to offer a full line of apparel and accessories‚ at a price-point that appeals to a wider audience. Burberry’s competitive position is sustainable over the long term because of its branding strategy: fashion products‚ which include the latest trends and are meant to change frequently; and continuity products
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Flores: 1. Use pricing strategy to increase commercial revenue hours * This method will not add extra costs. However‚ according to our estimation above‚ changing price to either $1000 (97 hours) or $600 (180 hours) cannot prevent a net loss. 2. Increase sales promotion cost to win more business but the price unchanged * If SDS wants to increase 30% of commercial sales‚ the extra promotion costs cannot exceed $2012. Considering the promotion cost $8083 on March‚ additional
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less a charge for the cost of capital that is employed to produce the income. • EVA = NOPAT − WACC × Capital (1) where NOPAT is net operating profit after tax‚ and WACC is the weighted average cost of capital to the firm‚ an implicit market price that reflects the risk to the supplier of finance. Competitive Strategy and Game Theory Economic Value Added (or Economic Profit) • EVA = (RONA −WACC) × Capital (2) where RONA is return on net assets i.e. capital (i.e.‚ NOPAT/Capital).
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MEDICINAL LEECHES Over the years‚ people have been more and more conscious about the expensive prices of farmaceutical drugs. Either is it for a simple cough‚ headache or blood pressure problems‚ all we hear is how much everything costs. Starting to think about it and talking to elderly people‚ we found out that majority of them would still like to get their hands on Russian drugs‚ which they say have more effect and are cheaper‚ because they are made in Russia. Let us also draw our attention to
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commodity at large‚ does pricing affect demand in the industry? No‚ pricing does not affect demand in the industry. Cement is a homogeneous product with low price elasticity due to lack of substitute materials. Market demand for cement is normally elastic given its low value commodity character. However‚ demand for cement is local and price inelasticity’s can be observed especially among different grades of cement. The market demand for cement worldwide keeps growing and as the standard of living
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operational costs and enhance their product line‚ they adopted a system‚ the Global Procurement System‚ in which centers were obtained to find low cost suppliers for the company’s hypermarkets around the world. As China’s products grew in quality and price‚ consumer consumption grew significantly as well. Originally Carrefour divided its operations into five regions throughout China. Each of these operations was independently sourcing from different suppliers in order to seize the market as quickly and
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a strong internationally known brand attracting key demographic customer groups. • The IKEA business model is unique in its construction and execution with little direct competition on a like for like basis. • Success has been driven from the price architecture offering value to the customer in innovative but functional products. • Despite the large shed operations IKEA operate there is a degree of specialist knowledge within key product areas where purchases are more considered and require
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