The term that refers to the functions used to move products through the channel to the customer is distribution
Answer:
$14.35
Explanation:
Firstly, we need to calculate enterprise value (EV) of this company, which is equal to present value of all free cashflows (CF):
- Terminal value of free cashflow at year 3 = Year 4 CF/(Cost of capital - Long-term growth) = [329 x (1 + 5.7%)^2 x (1 + 2.1%)]/(13.3% - 2.1%) = $3,350.84
- EV of the company = 329/(1 + 13.3%) + [329 x (1 + 5.7%)]/(1 + 13.3%)^2 + [329 x (1 + 5.7%)^2 + 3,350.84]/(1 + 13.3%)^3 = $3,117.91
Secondly, we calculate equity value as below:
EV = Equity value + Net debt = Equity value + (Debt - Cash), or:
3,117.91 = Equity value + (64 - 18), or Equity value = $3,071.91.
Finally, stock price of the company = Equity value/Number of shares = 3,071.91/214 = $14.35.
Answer:
the break even point in sales dollars is $223,667
Explanation:
The computation of the break even point in sales dollars is shown below:
= Fixed cost ÷ contribution margin ratio
= $80,520 ÷ ($138,960 ÷ $386,000)
= $80,520 ÷ 36%
= $223,667
Hence, the break even point in sales dollars is $223,667
This situation is known as cannibalization. Cannibalization is a marketing strategy that refers to the reduction company's see in there sales volume, revenue or market share of a current product when they release a new product. When a company releases a new product, those who are fans of their other products will likely try the new product instead of the hold which initially brings down the volume they sell and make from the initial product.
Answer:
$9,360
Explanation:
Cost Retail Ratio
Inventory, May 1 $10,440 $14,500 .72
Purchases 31,550 42,900
Freight-in 2,000
Purchase discounts (250)
Net markups 3,400
Net markdowns (1,300)
Totals excluding
beginning inventory 33,300 45,000 .74
Goods available $43,740 59,500
Sales (46,500)
Inventory, May 31 $13,000
Estimated inventory,
May 31 ($13,000 × .72) $ 9,360
