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Please answer within 2 hours. I will make sure to rate it. Shopkart Ltd. is an e-commerce company based in India. Amazing Inc. is looking
Please answer within 2 hours. I will make sure to rate it.
Shopkart Ltd. is an e-commerce company based in India. Amazing Inc. is looking to acquire Shopkart Ltd. Amazing Inc. would like to employ your services in finding out the value of Shopkart Ltd. The following information is available for the total revenues generated by the e-commerce company Shopkart Ltd. At time t=0, ie, currently, the number of internet users are 45 million users. The availability of internet at a lower cost would allow the number of internet users to grow at a constant rate of 30% per year till the next 3 years (0-1,1-2,2-3). Beyond 3 years, the number of internet users will remain stable at the Year 3 level till perpetuity. Shopkart's market penetration rate is 6.5% at t=0, which will reduce every year by 1% from the previous year (i.e. Year 1 it will be 5% and so on) till 3 years. Beyond 3 years, the company's market penetration rate will remain constant at the Year 3 level till perpetuity. The transactions per user are 0.52 at t=0, expected to increase by 50% every year till 3 years. Beyond 3 years, it will remain constant at the Year 3 level till perpetuity. The average ticket per transaction is a constant SOUSD every year till perpetuity. The commission charged is 5% on the gross merchandise sales every year till perpetuity. The company uses a block-chain engine for advertising and advertising revenues earned by the e-commerce company is 500,000 USD at t-0, expected to grow at 12.5% every year till 3 years. Beyond 3 years it is expected to stay constant at the Year 3 level till perpetuity. There are no other revenues earned. Hint to the calculations are provided below: (1) Number of Internet users (Y) (2) Company's market penetration rate (%) (3) Transactions per user (4) Average ticket per transaction (USD) (5) Commission charged (%) (Y) (6) Number of company's users = (1)x (2) Total transactions = (6) x (3) (8) Gross merchandise sales = (7) (4) (9) E-commerce revenues = (8) (5) (10) Advertising revenues (11) Other revenues (12) Total revenues - (9) + (10) + (11) Project the Gross Merchandise sales, E-commerce revenues, Advertising revenues, and Total revenues, for Shopkart Ltd. showing all calculations in a Table format for Years 0-3. Shopkart Ltd. is an e-commerce company based in India. Amazing Inc. is looking to acquire Shopkart Ltd. Amazing Inc. would like to employ your services in finding out the value of Shopkart Ltd. The following information is available for the total revenues generated by the e-commerce company Shopkart Ltd. At time t=0, ie, currently, the number of internet users are 45 million users. The availability of internet at a lower cost would allow the number of internet users to grow at a constant rate of 30% per year till the next 3 years (0-1,1-2,2-3). Beyond 3 years, the number of internet users will remain stable at the Year 3 level till perpetuity. Shopkart's market penetration rate is 6.5% at t=0, which will reduce every year by 1% from the previous year (i.e. Year 1 it will be 5% and so on) till 3 years. Beyond 3 years, the company's market penetration rate will remain constant at the Year 3 level till perpetuity. The transactions per user are 0.52 at t=0, expected to increase by 50% every year till 3 years. Beyond 3 years, it will remain constant at the Year 3 level till perpetuity. The average ticket per transaction is a constant SOUSD every year till perpetuity. The commission charged is 5% on the gross merchandise sales every year till perpetuity. The company uses a block-chain engine for advertising and advertising revenues earned by the e-commerce company is 500,000 USD at t-0, expected to grow at 12.5% every year till 3 years. Beyond 3 years it is expected to stay constant at the Year 3 level till perpetuity. There are no other revenues earned. Hint to the calculations are provided below: (1) Number of Internet users (Y) (2) Company's market penetration rate (%) (3) Transactions per user (4) Average ticket per transaction (USD) (5) Commission charged (%) (Y) (6) Number of company's users = (1)x (2) Total transactions = (6) x (3) (8) Gross merchandise sales = (7) (4) (9) E-commerce revenues = (8) (5) (10) Advertising revenues (11) Other revenues (12) Total revenues - (9) + (10) + (11) Project the Gross Merchandise sales, E-commerce revenues, Advertising revenues, and Total revenues, for Shopkart Ltd. showing all calculations in a Table format for Years 0-3Step by Step Solution
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