Use the following information on Disney to answer the case questions.

• Disney’s current stock price is $140.00 per share. The average growth rate of the company’s dividend has been 17.7% from 2004 through 2018.
• Disney’s return on equity is 28.0% and the company retains approximately 80.0% of its profits while paying out the remaining 20.0% in dividends.
• The company’s stock currently trades at 21.21 times its current year earnings estimate of $6.60 per share.
• Analysts expect the company to earn $6.19 per share in 2020 and $6.93 in 2021.
• Disney’s peers in media networks trade at 25.5 times their current-year earnings estimates while peers in parks, experiences and consumer products at 21.9; studio entertainment at 19.1 and DTCI at 14.1.
• Assume the expected return for Disney’s stock is 6.9%.

What is the Constant Growth Model, the Multi-Stage Growth Model, Discounted Dividend Model, and Market Multiples Approach?

Use the following information on Disney to answer the case questions.

◼ Disney’s current stock price is $140.00 per share. The average growth rate of the company’s dividend has been 17.7% from 2004 through 2018

◼ Disney’s return on equity is 28.0% and the company retains approximately 80.0% of its profits while paying out the remaining 20.0% in dividends.

◼ The company’s stock currently trades at 21.21 times its current year earnings estimate of $6.60 per share.

◼ Analysts expect the company to earn $6.19 per share in 2020 and $6.93 in 2021. ◼ Disney’s peers in media networks trade at 25.5 times their current year earnings estimates while peers in parks, experiences and consumer products at 21.9; studio entertainment at 19.1 and DTCI at 14.1.

◼ Assume the expected return for Disney’s stock is 6.9%.

What is Disney stock’s intrinsic value using Multi-Stage Growth Model

The client was a young IT professional who wanted to start-up a new company. The idea was to combine virtual reality developments with online education which was getting quite popular after coronavirus pandemic in 2020. Furthermore, the client was getting ready to launch virtual offices as well. Test runs have shown a strong interest from many companies as this would allow to save a lot of money on office spaces, utilities and supplies.

you have also asked the client which criteria is the most important for the new company: (a) organizational requirements and costs, (b) liability of the owners, (c) the continuity of the business, (d) the transferability of ownership, (e) management control and regulations, (f) the ability to raise capital or (g) income taxes.

Question . Specify the most suited legal form of business for each above mentioned criterion and explain the reason. Answer: a, b, c, d, e, f, and g

1.-The Belmount Company produces boots that sell for $ 20 a pair. During 2019, their sales volume was 10,000 pairs per month. In January 2020, a competitor, the V.R. Nelson Company cut the prices of its boots from $ 25 to $ 18 a pair. The following month, Belmount sold just 7,000 pairs of boots.
a) Determine the cross-arc elasticity of demand between Belmount and Nelson boots (assume that the Belmount price remains constant).
b) Suppose the price arc elasticity for Belmount boots is -2.0. Also, that Nelson kept the price of her boots at $ 18. How much price reduction will Belmount need to establish to increase its sales volume to the previous figure of 10,000 pairs per month?
c) Compare the total revenue of Belmount with sales volumes of 7,000 and 10,000 pairs after the Nelson Company's price reduction.
d) Does the analysis suggest the boots of the two companies are good or bad substitutes?

The Belmount Company produces boots that sell for $ 20 a pair. During 2019, their sales volume was 10,000 pairs per month. In January 2020, a competitor, the V.R. Nelson Company cut the prices of its boots from $ 25 to $ 18 a pair. The following month, Belmount sold just 7,000 pairs of boots.

a) Determine the cross-arc elasticity of demand between Belmount and Nelson boots (assume that the Belmount price remains constant).

b) Suppose the price arc elasticity for Belmount boots is -2.0. Also, that Nelson kept the price of her boots at $ 18. How much price reduction will Belmount need to establish to increase its sales volume to the previous figure of 10,000 pairs per month?

c) Compare the total revenue of Belmount with sales volumes of 7,000 and 10,000 pairs after the Nelson Company's price reduction.

d) Does the analysis suggest the boots of the two companies are good or bad substitutes?

1.Short Case A

In December 2019, Donald Trench, the CMO of Green Light Trucks, identified three new segments that the company wanted to enter in 2020. As the third quarter comes to an end, Donald would like to assess their performance in each of the new segments they penetrated. Donald needs your help!

1. Let’s say that the company has a Marketing Information System. What information do you need to extract from the system for you to analyze the third quarter performance?
2. For each segment, how would you know if it performed well or not?

2. Short Case B

You are a marketing consultant. A client of yours, a CMO wants your advice. Her project is to create a dashboard of indicators that show the contribution of marketing to the performance of the business. She wants to create this but unsure on the criteria she should use in designing the dashboard to make it effective.

What would you advise her?

Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March.

Problem 5-1A Part 3

3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. For specific identification, the March 9 sale consisted of 85 units from beginning inventory and 215 units from the March 5 purchase; the March 29 sale consisted of 65 units from the March 18 purchase and 105 units from the March 25 purchase.

Complete this questions by entering your answers in the below tabs.

-Perpetual FIFO

-Perpetal LIFO

-Weighted Average

-Specific ID

Required information

[The following information applies to the questions displayed below.]

Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions for March.

For specific identification, the March 9 sale consisted of 60 units from beginning inventory and 420 units from the March 5 purchase; the March 29 sale consisted of 100 units from the March 18 purchase and 180 units from the March 25 purchase.

3. Compute the cost assigned to ending inventory using

(a) FIFO,

(b) LIFO,

(c) weighted average (Round your average cost per unit to 2 decimal places.)

(d) specific identification.

The following information applies to the questions displayed below.]

Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions for March.  

For specific identification, the March 9 sale consisted of 40 units from beginning inventory and 430 units from the March 5 purchase; the March 29 sale consisted of 90 units from the March 18 purchase and 170 units from the March 25 purchase.

3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d)specific identification. (Round your average cost per unit to 2 decimal places.)

Matt and Debra Baxter live in an upscale neighborhood in Orem, Utah. Matt is a partner in the family owned business. Debra stays home with their child, Brady, who is age 5.

After visiting with their financial planner, the couple became concerned that they were spending too much and not putting enough funds aside for Brady’s future educational needs. Matt earns $85,000 per year, but with the rising costs of education, they are concerned.

Matt is an alumni of Duke University, a prestigious school with tuition and book expenses of approximately $18,000 per year. Debra graduated from Utah Valley University. The expense for tuition and books there is estimated at about $8,000 per year. When Brady turns 18, the couple wishes to send him to one of these two exceptional universities. They have a slight preference for Utah Valley University. The problem, however, is that with the rate at which tuition is increasing the Baxter’s are not sure they can save enough money and they have decided they do not want to borrow to pay for Brady’s education. Assume the tuition at both universities will increase at an annual rate of 5% from now until Brady starts college.

Living expenses are currently estimated to be $9,000 per year at both schools. This expense is expected to increase at only 3% per year. Further, assume that Baxter’s can deposit their money into a growth oriented mutual fund which has historically earned 12% per annum.

The couple wishes to save by having a pre-determined amount automatically withdrawn from their bank account at the end of each month. They plan to contribute from now until Brady starts college. When Brady starts college, at the beginning of his freshman year, they will stop making contributions. They want to have enough in their account when Brady starts college so the principle and interest will cover all four years of his college expenses. They will make annual withdrawals from the account to cover both tuition and living expenses for Brady at the beginning of his freshman, sophomore, junior, and senior years. When the withdrawal for the senior year is made the account balance will be zero.

Complete a thorough analysis and write a professional letter to the Baxter’s (who don’t understand finance) explaining the analysis you performed, why you performed it, and the results and conclusions. In the letter and attached schedules provide information that answers the following questions.

-When Brady is 18, what will be the tuition expense, living expense, and total expense for each of the four years that Brady will attend college? Provide the information for each University.

-What amount will be needed in the account when Brady starts his freshman year if he attends Duke? What amount if he attends UVU?--

-How much money will Matt and Debra have to deposit at the end of each month to allow Brady to attend Duke? How much money will have to be deposited per month to allow Brady to attend Utah Valley University? Assume that Matt and Debra stop making deposits when Brady starts college.

-The Baxter’s are concerned that given the current market performance the mutual fund will only earn 9% per year. Redo the analysis assuming they can earn only 9% per year on their investments. How much will be needed in the account when Brady starts college and how much will have to be deposited per month for Brady to have sufficient funds to attend each school?

Please show excel workthrough!