CONNECT WITH LEARNSMART FOR BODIE: ESSE
CONNECT WITH LEARNSMART FOR BODIE: ESSE
11th Edition
ISBN: 2819440196222
Author: Bodie
Publisher: MCG
Question
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Chapter 12, Problem 2CP
Summary Introduction

(a)

Case summary:

A multinational company named as Universal auto which was headquartered in the US. For accounting purpose, it has 2 segments

  1. Production of the motor vehicle
  2. Information processing services

Production of a motor vehicle is a larger vertical of Universal auto which produces cars as well as trucks for the US and for other countries. Nevertheless, it has weak operation results over the years including the current year.

Whereas Information processing service vertical is started 15 years ago, this vertical has steady growth.

Research report indicates that Universal can increase its price of passenger cars which can improve its profitability.

The character in this case:

Universal auto, First segment of production of the motor vehicle, Second segment of information processing service

To construct:

  1. Industrial life cycle
  2. Identify in which phase of the segments are
  3. Product pricing strategy for the segment

Introduction:

The life cycle of industrial has four-phases:

  1. Conception
  2. Growth
  3. Maturity
  4. Decline.

Duration of each phase varies with the respective industry. But this theory is different for manufacturing of goods and service, specifically for internet communications technology

Summary Introduction

(b)

Case summary:

A multinational company named as Universal auto which was headquartered in the US. For accounting purpose, it has 2 segments

  1. Production of the motor vehicle
  2. Information processing services

Production of a motor vehicle is a larger vertical of Universal auto which produces cars as well as trucks for the US and for other countries. Nevertheless, it has weak operation results over the years including the current year.

Whereas Information processing service vertical is started 15 years ago, this vertical has steady growth.

Research report indicates that Universal can increase its price of passenger cars which can improve its profitability.

The character in this case:

Universal auto, First segment of production of the motor vehicle, Second segment of information processing service

To construct:

  1. Industrial life cycle
  2. Identify in which phase of the segments are
  3. Product pricing strategy for the segment

Introduction:

The life cycle of industrial has four-phases:

  1. Conception
  2. Growth
  3. Maturity
  4. Decline.

Duration of each phase varies with the respective industry. But this theory is different for manufacturing of goods and service, specifically for internet communications technology

Summary Introduction

(c)

Case summary:

A multinational company named as Universal auto which was headquartered in the US. For accounting purpose, it has 2 segments

  1. Production of the motor vehicle
  2. Information processing services

Production of a motor vehicle is a larger vertical of Universal auto which produces cars as well as trucks for the US and for other countries. Nevertheless, it has weak operation results over the years including the current year.

Whereas Information processing service vertical is started 15 years ago, this vertical has steady growth.

Research report indicates that Universal can increase its price of passenger cars which can improve its profitability.

The character in this case:

Universal auto, First segment of production of the motor vehicle, Second segment of information processing service

To construct:

  1. Industrial life cycle
  2. Identify in which phase of the segments are
  3. Product pricing strategy for the segment

Introduction:

The life cycle of industrial has four-phases:

  1. Conception
  2. Growth
  3. Maturity
  4. Decline.

Duration of each phase varies with the respective industry. But this theory is different for manufacturing of goods and service, specifically for internet communications technology

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Estefan Industies has a new project available that requires an initial investment of sex million. The project will provide unlevered cash flows of $925,000 per year for the next 20 years. The company will finance the project with a debt-value ratio of 35. The company's bonds have a YTM of 5.9 percent. The companies with operations comparable to this project have unlevered betas of 1.09, 1.17, 1.28, and 1.20. The risk-free rate is 3.6 percent, and the market risk premium is 7 percent. The tax rate is 21 percent. What is the NPV of this project?
no ai   do not answer this question if data is not clear or image is blurr. please comment i will write values . but do not amswer with unclear values. i will give unhelpful.
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