Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Selection & justification of Methods chosen for valuation estimate of Starbucks/Dunkin Donuts Company's Market Share Market share=24.6% Market share opportunity=60% Sales in 2019= $1.37billion Net

Selection & justification of Methods chosen for valuation estimate of Starbucks/Dunkin Donuts

Company's Market Share

Market share=24.6%

Market share opportunity=60%

Sales in 2019= $1.37billion

Net Income=$242.02million

Gross profits= $708.5million

Gross margin=gross profit/sales

$708.5million/1.37billion=0.52

Operating income=$242.02million

Operating margins=operation income/sales

Operating margin= $242.02million/1.37billion=0.177

Horizontal analysis

Percentage change= {(new value-previous)/previous value}*100%

Net sales in 2019=$0.2422billion, 2020=$1.25billion

Difference=$1.00798billion

Percentage change = {($1.25billion-$0.24202billion)/$0.24202billion}*100%=416%

please explain the valuation computation on that figures of dinkin doughnut.

Step by Step Solution

3.30 Rating (153 Votes )

There are 3 Steps involved in it

Step: 1

Valuation of a company like Dunkin Donuts involves estimating its worth based on various financial metrics and market factors While the provided infor... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective

Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

8th Edition

1285190904, 978-1305176348, 1305176340, 978-1285190907

More Books

Students also viewed these Finance questions