Assignment No.: 3

Marketing Plan

The Company hired you as Marketing Manager of Saudi Arabian Region for "Canon" Company to start its activities in Saudi Arabia.

You have to establish a marketing department starting from the Analysis of the market, formulate overall marketing goals, objectives, strategies, and tactics within the context of an organization's business, mission, and goals designing and planning the entire function.

Write a Marketing Plan considering the following points

1. Introduction, Goals and Objectives

To introduce this section you should include the "mission statement" of the business; an idea of what its goals are for customers, clients, employees and the consumer.

1. Introduction about the business.
2. Business vision and mission
3. Business objective.
4. Products and services offered

2. Environmental Analysis

Conduct an environmental analysis that looks at and comments on your local area and your network of business contacts, competitors and customers.

3. Target Market Analysis

Identify the target market, describing how the company will meet the needs of the consumer better than the competition does.

(Q.5 As a student of corporate valuation ,You have been asked to estimated the value of Nomad limited, aprivate company using the discounted cash flow approach .You have been provided with the following information to enable you carry out the assignment.

On 31st December 2016,Nomad Limited earned Kenya shillings Five(5,000,000) million in earnings Before interest and Tax on revenue of Kenya shillings 30 million.The following extracts on data has also been provided for the financial year 2016.

(i) Total amount of debt outstanding in book value terms was three (3) million kenya shillings.The pre-tax interest rate on debt is ten percent.You have also established that book value and market value of debt is same.

(ii)The value of equity shown in the statement of financial position is five (5)million kenya shillings.Market value of equity for this firm should be based on the similar publicly listed companies relationship between book values and market values.

(iii)The amount for capital expenditure and depreciation was two(2)million and one(1)million respectively.

(iv) Amount of working capital investment for 2016 estimated as two percent of total revenue.

You have also been provided with the following information in respect of five comparable companies listed at the Nairobi securities exchange.

(a)The average beta has been estimated at 1.5

(b) The average debt-equity ratio based on the market value of equity is 0.25

(c)It is estimated that:

Market value of equity=3*Book value of equity

(d) Tax rate for all companies is 30%

You have also been provided with the following additional data:

(i)The average return on Nairobi securities exchange all share index(NASI) Is ten percent.

(ii) Average return (yield) on a ten year treasury bond has been estimated as six percent.

(iii) Revenues,Earnings before interest and tax,fixed capital investment,depreciation and working capital investment are expected to grow at an annual rate of five percent for ten years and two percent thereafter,forever except for fixed capital investment and depreciation which will offset each other at the steady state.

Required:

(i) Explain two challenges valuers experience when valueing private companied like Nomad.

(ii) Estimated the enterprise value for Nomad Limited (use three decimal places)

Roy Reds Ltd is a Manufacturing Company.The Following Ledger account balances were extracted from the books of the company for the year ended December 31,2004

stocks as at January1,2004:

Raw materials$40000,Partly manufactured good (WIP) $50000,Finished Goods $37000

Stocks as at December 31,2004:

Raw Materials $30000,Partly Manufactured goods (WIP) $60000 Finished Goods $45000

Other balances:

Purchases of raw materials$136000,freight and carriage on raw materials $5000,production workers salary $170000,Rent and Rates$8000,Gas and Fuel $15000,office workers pay $20000,Depreciation of productive machinery and plant $10000,sales $550000

Notes:

Rent and rates,gas and fuel must be apportioned 60% to factory and 40% to office.

Required:

Prepare the Manufacturing,Trading and Profit and loss Accounts for the period ending 31December 2004(clearly indicate the following in your answer)

1 Prime Cost

2 Factory Overheads

3 Cost of Production

4 Gross Profit

5 Net Profit

In this paper, please discuss the following case study. In doing so, explain your approach to the problem, support your approach with references, and execute your approach. Provide an answer to the case study’s question with a recommendation.

Case Study:

The Comic Book Publication Group (CBPG) specializes in creating, illustrating, writing, and printing various publications. It is a small but publicly traded corporation. CBPG currently has a capital structure of $12 million in bonds that pay a 5% coupon, $5 million in preferred stock with a par value of $35 per share and an annual dividend of $1.75 per share. The company has common stock with a book value of $6 million. The cost of capital associated with the common stock is 10%. The marginal tax rate for the firm is 33%.

The management of the company wishes to acquire additional capital for operations purposes. The chief executive officer (CEO) and chief financial officer (CFO) agree that another public debt offering (corporate bonds) in the amount of $10 million would suffice. They believe that due to favorable interest rates, the company could issue the bonds at par with a 4% coupon.

Before the Board of Directors convenes to discuss the debt Initial Public Offering (IPO), the CFO wants to provide some data for the board of directors’ meeting notebooks. One point of the analysis is to evaluate the debt offering’s impact on the company’s cost of capital. To do this:

• Solve for the current cost of capital of CBPG on a weighted average basis
• Solve for the new cost of capital, assuming the $10 million bond issued at par with a 4% coupon.
• Describe how you approached these calculations. Also discuss the tax shield advantage that debt capital provides, and briefly explain the cost of capital and WACC
• Provide a Table(s) to present answers (Students can transfer their EXCEL Table if utilized)

Summarize findings

Superior papers will explain the following elements when responding to the assignment questions:

• Provide narrative and solve for the current cost of capital of CBPG on a weighted average basis (WACC)
• Provide narrative and solve for the new cost of capital (WACC)
• Provide accurate WACC calculations for both scenarios
• Provide a Table(s) to present answers (there is a difference between performing calculations and presenting the supporting data and solved answers)
• Provide narrative on tax shield implications for both scenarios
• Provide narrative briefly explaining the cost of capital and WACC
• Provide a clear, logical conclusion

Pinworm: In a random sample of 830 adults in the U.S.A., it was found that 74 of those had a pinworm infestation. You want to find the 90% confidence interval for the proportion of all U.S. adults with pinworm.

(a) What is the point estimate for the proportion of all U.S. adults with pinworm? Round your answer to 3 decimal places.


(b) What is the critical value of z (denoted z_α/2) for a 90% confidence interval? Use the value from the table or, if using software, round to 2 decimal places.
z_α/2 =

(c) What is the margin of error (E) for a 90% confidence interval? Round your answer to 3 decimal places.
E =

(d) Construct the 90% confidence interval for the proportion of all U.S. adults with pinworm. Round your answers to 3 decimal places.
< p <

(e) Based on your answer to part (d), are you 90% confident that more than 5% of all U.S. adults have pinworm?

Yes, because 0.05 is above the lower limit of the confidence interval.No, because 0.05 is below the lower limit of the confidence interval.    No, because 0.05 is above the lower limit of the confidence interval.Yes, because 0.05 is below the lower limit of the confidence interval.

(f) In Sludge County, the proportion of adults with pinworm is found to be 0.15. Based on your answer to (d), does Sludge County's pinworm infestation rate appear to be greater than the national average?

No, because 0.15 is above the upper limit of the confidence interval.Yes, because 0.15 is below the upper limit of the confidence interval.    No, because 0.15 is below the upper limit of the confidence interval.Yes, because 0.15 is above the upper limit of the confidence interval.

A population has a mean of 74 with a standard deviation of 9.8.

a.) what is the probability that one element of the population selected at random is between 70 and 91?

b.) what is the probability that a random sample of 36 from this population has a sample mean between 73 and 79?

A population has a mean of 74 with a standard deviation of 9.8.

a) What is the probability that one element of the population selected at random is between 70 and 91?

b) What is the probability that a random sample of 36 from this population has a sample mean between 73 and 79?

The quarterly returns for a group of 74 mutual funds with a mean of 1.1​% and a standard deviation of 4.9​% can be modeled by a Normal model. Based on the model ​N(0.011​,0.049​), what are the cutoff values for the ​a) highest 20% of these​ funds? ​b) lowest 40%? ​c) middle 80​%? ​d) highest 60%?

Company A and Company B are both wholly owned subsidiaries of Parent, Inc. Parent has no other operations, balance sheet items or income statement items other than its ownership of Company 1 (located in China) and Company 2 (located in US). Company 2 periodically sells goods to Company 1 for resale to end customers. Such goods are sold at the same pricing terms that Company 2 sells to all other customers. Prior to January 1, 2018, there had never been any inventory sales from Company 1 to Company 2 or from Company 2 to Company 1. The following is data for each company for 2018 and 2019:

Company 1 Company 2

     Year ended 12/31/18

Sales to all customers $300 million $150 million

Costs of sales $150 million $100 million

All other non production expenses $ 60 million $ 40 million

Pre tax income $ 90 million $ 10 million

Inventory purchased from Company 1 held

By Company 2 at end of year NONE

Inventory purchased from Company 2 held

By Company 1 at end of year $15 million

    Year ended 12/31/19

Sales to all customers $280 million $160 million

Costs of sales $140 million $120 million

All other non production expenses $ 60 million $ 30 million

Pretax income $ 80 million $ 10 million

Inventory purchased from Company 1 held

By Company 2 at end of year NONE

Inventory purchased from Company 2 held

By Company 1 at end of year $16 million

What would consolidated pretax income be for Parent for 2018 and 2019