compre pprs

7/30/2019 Compre Pprs

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MktingCase abt motorolla n razrQ1 brand orientation n product orientationQ2 what were succes factor of motorola razr n failure factors of motorola n razrQ3 how would u help motorolla frm 2006 failure

Hrm caseMr ali wants to open frozen food chainMake a strategic plan n hr plan to make company leader in 5 years

Finance case stdy is in another mail

RegardsM Muzammil Moten

Finance:What is capital budgetingWhat is the difference between a company's capital budgeting decisions and anindividual's investment decisionsDifference between payback and npvDifference between payback and discounted paybackWhat iss IRRProject 1: -10000, 7000, 5000, 2000Project 2: -10000, 3000, 5000, 6000

Inn ka IRR, payback wagera nikalna thaBased on the company's payback which project would u choose if company's maximumacceptable payback is 2 years? If both projects are independent? If both projects aremutually exclusive?Last question tha if you were to select one project which one would u select and why?

Marketing:Starbucks ki case study thi

Write any 3 marketing Instruments used by the managementWhat are the reasons of downfall of StarbucksWhat would you suggest Starbucks should do regain it's charm

Management:Cbm wants to open a business school in dubai and wants to start classes in September2012. Define a core strategy and develop a HR plan for it.


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James Preston, the chief financial officer of PrestonResources, has been asked to do anevaluation of DunningChemical Company by the president and Chair of the Board,Sharon John. Preston Resources was planning a joint venturewith Dunning (whichwas privately traded), and Sharon and Jamesneeded a betterfeel for what Dunnings stock was worth because they mightbe interested in buying the firm in the future.Dunning Chemical paid a dividend at the end of year one of$1.30, the anticipatedgrowth rate was 10 percent, and the required rate of return

was 14 percent.a. What is the value of the stock based on the dividendvaluation model (Formula

P = )?b. Indicate that the value you computed in part ais correct byshowing the value ofD1, D2, and D3 and discounting each back to the present at14 percent. D1 is

$1.30 and it increases by 10 percent (g) each year. Alsodiscount back theanticipated stock price at the end of year three to the presentand add it to thepresent value of the three dividend payments.The value of the stock at the end of year three is:

If you have done all these steps correctly, you should get ananswerapproximately equal to the answer in part a.c.As an alternative measure, you also examine the value ofthe firm based on theprice-earnings (P/E) ratio times earnings per share.


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Since the company is privately traded (not in the public stockmarket), youwill get your anticipated P/E ratio by taking the average valueof five publiclytraded chemical companies. The P/E ratios were as followsduring the timeperiod under analysis:

P/E RatioDow Chemical. . . . . . . . . . . . . . 15Du Pont . . . . . . . . . . . . . . . . . . . 18Georgia Gulf . . . . . . . . . . . . . . . 7

3M. . . . . . . . . . . . . . . . . . . . . . . 19Olin Corp. . . . . . . . . . . . . . . . . . 21Assume Dunning Chemical has earnings per share of $2.10.What is the stockvalue based on the P/E ratio approach? Multiply the averageP/E ratio youcomputed times earnings per share. How does this valuecompare to the dividend

valuation model values that you computed in partsaand b?d. If in computing the industry average P/E, you decide toweight Olin Corp. by40 percent and the other four firms by 15 percent, what wouldbe the newweighted average industry P/E? (Note: You decided to weightOlin Corp. moreheavily because it is similar to Dunning Chemical.) What will

the new stockprice be? Earnings per share will stay at $2.10.e. By what percent will the stock price change as a result ofusing the weightedaverage industry P/E ratio in part das opposed tothat inpart c?


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