Answered step by step
Verified Expert Solution
Question
1 Approved Answer
In Sep 2010, HP acquired 3PAR. Table 1 provides selected financial data on 3PAR and a set of valuation assumptions. The 10 year forecasting period
In Sep 2010, HP acquired 3PAR. Table 1 provides selected financial data on 3PAR and a set of valuation assumptions. The 10 year forecasting period (2011-2020) and continued 3PAR high sales-growth rate reflect the HP expectation that its extensive global sales force can expand the sale of 3PAR products. To support further development of the 3PAR products, the valuation assumptions reflect an increase in plant and equipment spending in excess of depreciation and amortization through 2016; however, beyond 2016, capital spending is expected to grow at the same rate as depreciation as the business moves from a growth mode to a maintenance mode. 3PAR's operating margin is expected to show a slow recovery, reflecting the impact of escalating marketing expenses and the cost of training the HP sales force in the promotion of the 3PAR technology. In Sep 2010, HP acquired 3PAR. Table 1 provides selected financial data on 3PAR and a set of valuation assumptions. The 10 year forecasting period (2011-2020) and continued 3PAR high sales-growth rate reflect the HP expectation that its extensive global sales force can expand the sale of 3PAR products. To support further development of the 3PAR products, the valuation assumptions reflect an increase in plant and equipment spending in excess of depreciation and amortization through 2016; however, beyond 2016, capital spending is expected to grow at the same rate as depreciation as the business moves from a growth mode to a maintenance mode. 3PAR's operating margin is expected to show a slow recovery, reflecting the impact of escalating marketing expenses and the cost of training the HP sales force in the promotion of the 3PAR technology
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started