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Do a sensitivity analysis using your discounted cash flow model. Recalculate the price per share for Robertson for the following scenarios: Cost of goods sold/sales
Do a sensitivity analysis using your discounted cash flow model. Recalculate the price per share for Robertson for the following scenarios: Cost of goods sold/sales and SG&A/Sales remains at 69% and 22%, respectively (i.e., there are no-cost improvements) (no changes to your original assumption of growth rates) [show this analysis in your spreadsheet] Estimate the margin rates (COGS/Sales and SG&A/Sales) that will result in a price of $50 (the minimum price Simmons is willing to accept you can do this using trial and error). [show this analysis in your spreadsheet]
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