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help please P67 to 12 Nigel French, an analyst at Twurus investment Managenent, is analyzing Archwiy Techologies, a manufacture of luxury electronic auso equipment, at
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P67 to 12 Nigel French, an analyst at Twurus investment Managenent, is analyzing Archwiy Techologies, a manufacture of luxury electronic auso equipment, at the recuest of his supervisor, Lukas Wright. French is ached to evaluate Archway's profitability over the past five years relative to its two main competitors. Which are located in different countries with significantly different tax structures. French begins by assessing Archway's competitive position within the lumury electronic anto equipment industry using Porter's five forces framework, A sumenary of French's industry analysis is presented in Exhiblt 3 . French notes that for the year kust ended (2014), Archway's cost of goods wold was 301 of sales. To forecast Archway's income statement for 2015. French aswumes that all companies in the industry will experience an inflation rate of Bic on the cost of goods sold. Exhibit 4 showi Frenchis forecasts relating to Archwar/s price and volume changes. After putting together income statement projections for Archway. French forecasts Archway/s balance sheet itemst he uses Archwar/s historical efficiency ratios to forecast the company's working capital accounts. Dased on his financial forecast for Archway. French estimates a terminal value using a valuation multiple based on the compary's werase price-to'earnings multiple (P.) over the past five years. Wright discusses with French how the termsal value estimate is pensitive to key aswumptions about the company's future prospects. Wrieht asks Frenche "What change in the cakeifation of the terminal value would you make if a technological development that would adversely affect Archway was forecast to occur sometime beyond your financial forecast horiton?" 22 I ivini If the expected average price increxse per unit is positive 5.00x and the expected volume growth is negative 3 oos, what is the expected percent change in revenue? (Enter pour answer as a decinalized number with four ploces. For exomple, if your answer is 12.34%, enter 0.1234 ) Nigel French, an analyst at Taurus investment Management, is analyzing Archway Technologies, a manufacturer of luxury electronic auto equipment, at the request of his supervisor, Lukas Wright. French is asked to evaluate Archway/s profitability over the past frue years relative to its two main competitors, which are located in different countries with significantly different tax structures. French begins by assessing Acchway's competitive position within the lusury electronic auto equipment industry using Porter's five forces framework. A summary of French's industry analysis is presented in Exhibit 3 . Exhibit 3 Analvsis of Luxurv Electronic Auto Eauloment Industrv Usine Porter's Five Forces Framework French notes that for the year just ended (20t4), Archwm/s cost of goods sold was 300 of sales. Fo forecast Archways income statement for 2015 . French assumes that all companies in the industry will experience an infation rate of 8 K on the cost of goods sold. Exhible 4 shows Frenchis forecasts relatine to Archway's price and volume changet. Exhihit 4 Archwav's 2015 Farecasted Prire and Volume Chanees After putting together income statement projections for Archway, French forecasts Archiway's balance sheet items, he uses Archian's Nistorical efficiency ratios to forecast the company/s working capital accounts. Based on his financial forecast for Archway. Frenchestimates a terminal value using a valuation multiple based on the compamy's average price-to-earnings multiple (P/) over the gast tive years. Wright discusses with French how the terminal value estimate is sensitive to key aswumptions about the compary/s future prospects. Wright asks Frenchi "What change in the calculation of the terminal value would you make if a technological development that would adversely affect Archwoy was forecast to occur rometime beyond your financial forecast horisont" 23 1 point If all companies in the industry will experience an inflation rate of 8.00% on the cost of gocds sold and sales volume is expected to shrink 3.00%, what is the expected percent change in cost of gocds sold on the income statement? (Enter your answer as a decimalized number with four ploces. For example, if your answer is 12.34X, enter 21234) Nigel French, an analyst at Teurus Investment Management, is analycing Archway Techoologies, a manufacturer of luxury electronic auto equipment, at the recuest of his supervisor, tukas Wright. French is asked to evaluate Archway's profitability over the past five years relative to its two main competitors. Whikh are located in different countries with sigiticantly different tax structures. French begins by assessing Archway's competitive position within the fumury electronic auto equipment industry using Porter's five forces framework. A summary of French's industry analysis is presented in Exhibit 3. Exhiblt 3 Analvsis of Loxurv Electronic Auto Eouloment Industrv Usline Porter's Five Forces Framework French notes that for the year kust ended (2014). Archway's cost of goods sold was 30s of sales. To forecast Archway's income statement for 2015, French assumes that all companies in the industry will experience an inflation rate of 6% on the cost of goods sold. Exthibit 4 shows French's forecasts relating to Archway's price and volume changes. After putting together income statement projections for Archway. French forecasts Archway's balance sheet itema: he uses Archway's historical efficiency ratios to forecast the company's working capital accounts. Based on his financial forecast for Archway. French estimates a terminal value using a valuation multiple based on the compasy's average price-to-earnings multiple (PyE) ever the past five years. Weight discusves with French how the terminal value estimate is sensitive to key assumptions about the company's future prospects. Wright asks Frenche "What change in the calculation of the terminal value would you make if a technological developenent that would advervely affect Archway was forecast to occur sometime beyond your financial forecast horizon?" 251 point Assume sales volume for the company is expected to shrink 3.00 si while their average price per unit is expected to rise 5.000 and all companies in the industry will experience an infistion rate of B.005 on cest of goods sold. If cost of goods sold for the compary was originally 30% of sales, what percent of sales will it become as a result of these tactors? (Enter your answer a number with two decimol places but without the percent symbol. For evample if your dnswer is 89.12K, enter 89.12 ) Gertrude Fromm is a transportation sector analyst at Tucana Investments. She is conducting an analysis of Omikroon, N.V, a publicly traded European transportation company that manufactures and sells sconters and commercial trucks. Omikroon's petrol scooter division is the market leader in its sector and has two competitors. Omikroon's petrol scooters have a strong brand name and a well-established distribution network. Given the strong branding established by the market leaders, the cost of entering the industry is high. But Fromm ansicipates that inepensive imported small petrol-fueled motor-cycles may became substitutes for Omikroen's petrol scooters. Fromm uses return on imvested capital as the metric to assess Dmikroor's performance. Omikroan has just introduced the first electric scooter to the market at year-end 2014 . The company's expectations are as follows: - Competing electric scooters will reach the market in 2016 . - Electric scooters will not be a substitute for petrol scooters. - The important research costs in 2015 and 2016 will lead to more efficient electric scooters. Fromm docides to use a five year forecast horizon for Omikroen after considering the following factors: Factor 1. The annual portfolio turnover at Tucana imestments is 30sh. Factor 2. The electronic scooter industry is expected to grow rapldly over the next 10 years. Factor 3t. Omilkroon has announced it would acquire a light truck manufacturer that will be tully integated to its truck division by 2016 and will add 20 to its total revenues. Fromm uses the base case forecast for 2015 shown in Extibit 5 to perform the following sensitivity analysis: - The price of an imported specialty metal used for engine parts increases by 20x - This metal constitutes 45 of Omikroon's cost of sales. - Omikroon will noe be able to pass on the higher metal experse to its customers. Omikroon will initially outsource its electric scooter parts. But manufacturing these parts in-house beginning in 2016 will imply changes to an existing factory. This factory cost 67 milition three years ago and had an estimated useful nife of 10 years. Fromm is evaluating two scenarios: Scenariot: Sell the existing factory for C5 million. Build a new factory costing 630 million with a laseful life of 10 years. Scenario 21. Refit the existing factory for 627 million, 34 1 poist Exhibit 5 shows cost of sales equal to 105.38. If an imported specialty metal constitutes 4% of this figure and the cost of that specialty metal goes up 200 how much would cost of sales become in Fremen's sersitivity analysis? Enter your anwer as a number with two decinal ploces. Ike this 88.121 P6.7 to 12 Nigel French, an analyst at Taurus investment Management, is analyzing Archway Technologies, a manufacturer of lumury electronic auto equipment, at the request of his supervisoc, Lukas Wright. French is asked to evaluate Archway's profitability over the past five years relative to its two main competitors, which are located in different countries with significantly different tax structures. French begins by assessing Archway's competitive position within the luxury eloctronic auto equipment industry using Porter's five forces framework. A suamary of French's inchustry analysis is presented in Exthibit 3 . Exchibit 3 Analvsis of Luxury Electronic Auto Eauibenent Industry Usine Porter's Flve Forces Framework French notes that for the year just ended (2014). Archway's cost of goods sold was 30 of sales. To forecast Archway's incerne statement for 2015. French assumes that all companies in the industry will experience an infaticn rate of 8 on the cost of goods sold. Exhibit 4 shows French's forecasts relating to Arcitway's price and volume changes. Ater putting together income statement projections for Arcirway. French forecasts Archway's batance sheet items be uses Arcirway's historical efficiency ratios to forecast the compam/s working capltal accounts. Based on his finanelal forecast for Archwyy. French estimates a terminal value usisg a valuation multiple based ca the company's average price-to-earnings multiple (PyE) over the past five years. Wright discusses with French how the terminal value estimate is sensitive to key assumptions about the compamy's future prospects. Wright asks French: "What change in the calculation of the terminal value would you make if a technological development that would adversely affect Archway was forecast to occur soreetime beyond your financial forecast horizon?" 26 inemini For the year fust ended (2014). Archnwy's gross mantin was sercent. (Enter yeur aniwer as a whsle mamber with no percent sigit and zero decimal places. For example, If your answer is 1000 , enter 100 . P67 to 12 Nigel French, an analyst at Twurus investment Managenent, is analyzing Archwiy Techologies, a manufacture of luxury electronic auso equipment, at the recuest of his supervisor, Lukas Wright. French is ached to evaluate Archway's profitability over the past five years relative to its two main competitors. Which are located in different countries with significantly different tax structures. French begins by assessing Archway's competitive position within the lumury electronic anto equipment industry using Porter's five forces framework, A sumenary of French's industry analysis is presented in Exhiblt 3 . French notes that for the year kust ended (2014), Archway's cost of goods wold was 301 of sales. To forecast Archway's income statement for 2015. French aswumes that all companies in the industry will experience an inflation rate of Bic on the cost of goods sold. Exhibit 4 showi Frenchis forecasts relating to Archwar/s price and volume changes. After putting together income statement projections for Archway. French forecasts Archway/s balance sheet itemst he uses Archwar/s historical efficiency ratios to forecast the company's working capital accounts. Dased on his financial forecast for Archway. French estimates a terminal value using a valuation multiple based on the compary's werase price-to'earnings multiple (P.) over the past five years. Wright discusses with French how the termsal value estimate is pensitive to key aswumptions about the company's future prospects. Wrieht asks Frenche "What change in the cakeifation of the terminal value would you make if a technological development that would adversely affect Archway was forecast to occur sometime beyond your financial forecast horiton?" 22 I ivini If the expected average price increxse per unit is positive 5.00x and the expected volume growth is negative 3 oos, what is the expected percent change in revenue? (Enter pour answer as a decinalized number with four ploces. For exomple, if your answer is 12.34%, enter 0.1234 ) Nigel French, an analyst at Taurus investment Management, is analyzing Archway Technologies, a manufacturer of luxury electronic auto equipment, at the request of his supervisor, Lukas Wright. French is asked to evaluate Archway/s profitability over the past frue years relative to its two main competitors, which are located in different countries with significantly different tax structures. French begins by assessing Acchway's competitive position within the lusury electronic auto equipment industry using Porter's five forces framework. A summary of French's industry analysis is presented in Exhibit 3 . Exhibit 3 Analvsis of Luxurv Electronic Auto Eauloment Industrv Usine Porter's Five Forces Framework French notes that for the year just ended (20t4), Archwm/s cost of goods sold was 300 of sales. Fo forecast Archways income statement for 2015 . French assumes that all companies in the industry will experience an infation rate of 8 K on the cost of goods sold. Exhible 4 shows Frenchis forecasts relatine to Archway's price and volume changet. Exhihit 4 Archwav's 2015 Farecasted Prire and Volume Chanees After putting together income statement projections for Archway, French forecasts Archiway's balance sheet items, he uses Archian's Nistorical efficiency ratios to forecast the company/s working capital accounts. Based on his financial forecast for Archway. Frenchestimates a terminal value using a valuation multiple based on the compamy's average price-to-earnings multiple (P/) over the gast tive years. Wright discusses with French how the terminal value estimate is sensitive to key aswumptions about the compary/s future prospects. Wright asks Frenchi "What change in the calculation of the terminal value would you make if a technological development that would adversely affect Archwoy was forecast to occur rometime beyond your financial forecast horisont" 23 1 point If all companies in the industry will experience an inflation rate of 8.00% on the cost of gocds sold and sales volume is expected to shrink 3.00%, what is the expected percent change in cost of gocds sold on the income statement? (Enter your answer as a decimalized number with four ploces. For example, if your answer is 12.34X, enter 21234) Nigel French, an analyst at Teurus Investment Management, is analycing Archway Techoologies, a manufacturer of luxury electronic auto equipment, at the recuest of his supervisor, tukas Wright. French is asked to evaluate Archway's profitability over the past five years relative to its two main competitors. Whikh are located in different countries with sigiticantly different tax structures. French begins by assessing Archway's competitive position within the fumury electronic auto equipment industry using Porter's five forces framework. A summary of French's industry analysis is presented in Exhibit 3. Exhiblt 3 Analvsis of Loxurv Electronic Auto Eouloment Industrv Usline Porter's Five Forces Framework French notes that for the year kust ended (2014). Archway's cost of goods sold was 30s of sales. To forecast Archway's income statement for 2015, French assumes that all companies in the industry will experience an inflation rate of 6% on the cost of goods sold. Exthibit 4 shows French's forecasts relating to Archway's price and volume changes. After putting together income statement projections for Archway. French forecasts Archway's balance sheet itema: he uses Archway's historical efficiency ratios to forecast the company's working capital accounts. Based on his financial forecast for Archway. French estimates a terminal value using a valuation multiple based on the compasy's average price-to-earnings multiple (PyE) ever the past five years. Weight discusves with French how the terminal value estimate is sensitive to key assumptions about the company's future prospects. Wright asks Frenche "What change in the calculation of the terminal value would you make if a technological developenent that would advervely affect Archway was forecast to occur sometime beyond your financial forecast horizon?" 251 point Assume sales volume for the company is expected to shrink 3.00 si while their average price per unit is expected to rise 5.000 and all companies in the industry will experience an infistion rate of B.005 on cest of goods sold. If cost of goods sold for the compary was originally 30% of sales, what percent of sales will it become as a result of these tactors? (Enter your answer a number with two decimol places but without the percent symbol. For evample if your dnswer is 89.12K, enter 89.12 ) Gertrude Fromm is a transportation sector analyst at Tucana Investments. She is conducting an analysis of Omikroon, N.V, a publicly traded European transportation company that manufactures and sells sconters and commercial trucks. Omikroon's petrol scooter division is the market leader in its sector and has two competitors. Omikroon's petrol scooters have a strong brand name and a well-established distribution network. Given the strong branding established by the market leaders, the cost of entering the industry is high. But Fromm ansicipates that inepensive imported small petrol-fueled motor-cycles may became substitutes for Omikroen's petrol scooters. Fromm uses return on imvested capital as the metric to assess Dmikroor's performance. Omikroan has just introduced the first electric scooter to the market at year-end 2014 . The company's expectations are as follows: - Competing electric scooters will reach the market in 2016 . - Electric scooters will not be a substitute for petrol scooters. - The important research costs in 2015 and 2016 will lead to more efficient electric scooters. Fromm docides to use a five year forecast horizon for Omikroen after considering the following factors: Factor 1. The annual portfolio turnover at Tucana imestments is 30sh. Factor 2. The electronic scooter industry is expected to grow rapldly over the next 10 years. Factor 3t. Omilkroon has announced it would acquire a light truck manufacturer that will be tully integated to its truck division by 2016 and will add 20 to its total revenues. Fromm uses the base case forecast for 2015 shown in Extibit 5 to perform the following sensitivity analysis: - The price of an imported specialty metal used for engine parts increases by 20x - This metal constitutes 45 of Omikroon's cost of sales. - Omikroon will noe be able to pass on the higher metal experse to its customers. Omikroon will initially outsource its electric scooter parts. But manufacturing these parts in-house beginning in 2016 will imply changes to an existing factory. This factory cost 67 milition three years ago and had an estimated useful nife of 10 years. Fromm is evaluating two scenarios: Scenariot: Sell the existing factory for C5 million. Build a new factory costing 630 million with a laseful life of 10 years. Scenario 21. Refit the existing factory for 627 million, 34 1 poist Exhibit 5 shows cost of sales equal to 105.38. If an imported specialty metal constitutes 4% of this figure and the cost of that specialty metal goes up 200 how much would cost of sales become in Fremen's sersitivity analysis? Enter your anwer as a number with two decinal ploces. Ike this 88.121 P6.7 to 12 Nigel French, an analyst at Taurus investment Management, is analyzing Archway Technologies, a manufacturer of lumury electronic auto equipment, at the request of his supervisoc, Lukas Wright. French is asked to evaluate Archway's profitability over the past five years relative to its two main competitors, which are located in different countries with significantly different tax structures. French begins by assessing Archway's competitive position within the luxury eloctronic auto equipment industry using Porter's five forces framework. A suamary of French's inchustry analysis is presented in Exthibit 3 . Exchibit 3 Analvsis of Luxury Electronic Auto Eauibenent Industry Usine Porter's Flve Forces Framework French notes that for the year just ended (2014). Archway's cost of goods sold was 30 of sales. To forecast Archway's incerne statement for 2015. French assumes that all companies in the industry will experience an infaticn rate of 8 on the cost of goods sold. Exhibit 4 shows French's forecasts relating to Arcitway's price and volume changes. Ater putting together income statement projections for Arcirway. French forecasts Archway's batance sheet items be uses Arcirway's historical efficiency ratios to forecast the compam/s working capltal accounts. Based on his finanelal forecast for Archwyy. French estimates a terminal value usisg a valuation multiple based ca the company's average price-to-earnings multiple (PyE) over the past five years. Wright discusses with French how the terminal value estimate is sensitive to key assumptions about the compamy's future prospects. Wright asks French: "What change in the calculation of the terminal value would you make if a technological development that would adversely affect Archway was forecast to occur soreetime beyond your financial forecast horizon?" 26 inemini For the year fust ended (2014). Archnwy's gross mantin was sercent. (Enter yeur aniwer as a whsle mamber with no percent sigit and zero decimal places. For example, If your answer is 1000 , enter 100 Step by Step Solution
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