6. What is the difference between the Industry potential and a Company's sales forecast? In the following example, the Industry potential is deemed to be 5 million potential customers. The Industry penetration for 2021 is trending toward 30% (and forecast to increase to 40% in 2022 and to 50% in 2023). Your company's market share in 2021 is trending toward 25% (and forecast to increase to 35% in 2022 and to 45% in 2023). How many customers is your company forecasting to serve for each year 2021 through 2023? Show your calculations.

6. What is the difference between the Industry potential and a Company's sales forecast? In the following example, the Industry potential is deemed to be 5 million potential customers. The Industry penetration for 2021 is trending toward 30% (and forecast to increase to 40% in 2022 and to 50% in 2023). Your company's market share in 2021 is trending toward 25% (and forecast to increase to 35% in 2022 and to 45% in 2023). How many customers is your company forecasting to serve for each year 2021 through 2023? Show your calculations.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

The following table presents forecasted financial and other information for Scandinavian Furniture: Projected EBIT Earnings after tax Free cash flow Havasham's WACC Expected growth rate in FCFs after 2014 Warranted MV firm/FCF in 2014 Warranted P/E in 2014 O $3,628 million O $363 million O $3,833 million 2012 $317 197 135 O $161 million 8.2% 4.0% What is an appropriate estimate of Scandinavian Furniture's terminal value as of the end of 2014, using the perpetual-growth equation as your estimate? 19.4 18.7 2013 $339 210 144 2014 $363 225 155
Consider an economy with two types of companies, S and I. The profits of companies S always move together, but the profits of companies I move independently of each other. For both firms, there is a 70% probability that the firm's return is 30%, and a 30% probability that the return is -30%. The standard deviation of an individual company's return is closest to the value: Choose one: A.23.0% B.5.25% C.15.0% D.10.0% Only typed answer
Give typing answer with explanation and conclusion 1. If the value of sustainable investing is $171.1 and the discount rate is 8% while the value of non-sustainable investing is $15.7 and the company has a 28.7% probability of being sustainable. What is the expected value today of the company given a 18 year horizon? (Answer to 2 decimal places in $).
Aman Archery Corporation, a rapidly expanding crossbow distributor to retail outlets, is in the process of formulating plans for 2022. The marketing director, Syahrul has completed his 2022 forecast and is confident the sales estimates will meet or exceed the forecast. The following sales figures shows the forecasted sales and will provide the planning basis for another corporate department. Forecasted sales (RM) 1,800,000 2,000,000 2,200,000 Month January February March The sales for November and December 2021 are RM1,500,000 and RM1,700,000 respectively. Adnin, the assistant controller has been given the responsibility for formulating the cash flow projection, a critical element during a period of rapid expansion. The following information will be used in preparing the cash analysis: (i) Aman Archery has experienced an excellent record in account receivable collection and expects this trend to continue. 60% of sales are collected in the month after the sales and 40% in the second…
We are trying to value the technology company B&B's share price. If the appropriate industry PE for this type of company is 5 and you predict net income for B&B to be $3 million for the coming year. Assuming the firm has 1 million shares of common stock. What is the forecasted stock price for a year from now? $3 $10 $8 $15
You are given the dollar value of a product in 2016 and the rate at which the value of the product is expected to change during the next 5 years. Use this information to write a linear equation that gives the dollar value V of the product in terms of the year t. (Let t = 16 represent 2016.) 2016 Value Rate $5000 $170 decrease per year
6
Is the company growing? Explain. Be sure to include the percentages you got Millions of US $ $-94 $-38 $-36 $52 $-28 $-33 $-28 Annual Net Income 2022 2021 2020 2019 2018 2017 2016 To calculate growth versus prior years, use this formula: (this year's number minus last year's number)/Last year's number). This will give you the percentage change from the previous year. • • From 2016 to 2017: ((-$33 million)-(-$28 million))/(-$28 million)) *100= 17.86% • From 2017 to 2018: ((-$28 million)-(-$33 million))/(-$33 million) *100= -15.15% From 2018 to 2019: (($52 million)-(-$28 million))/(-$28 million) *100= -285.71% From 2019 to 2020: ((-$36 million)-($52 million))/ ($52 million) *100= -169.23% ● From 2020 to 2021: ((-$38 million)-(-$36 million))/(-$36 million) *100= 5.56% From 2021 to 2022: ((-$94 million)-(-$38 million)/(-$38 million) *100= 147.36% • ●
Why did Estee Lauder greatly increase the payout ratio in 2020 when the pandemic broke out. Why Did it decrease its payout ratio dramatically in 2021
Suppose a firm has had the following historic sales figures. Year: 2016 Sales $1,420,000 2017 $1,720,000 Next year's sales 2018 2019 2020 $1,600,000 $2,010,000 $1,770,000 What would be the forecast for next year's sales using FORECAST.ETS to estimate a trend? Note: Round your answer to the nearest whole dollar. 27

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS