Abhishek

I will continue to offer the hot and cold beverages and add healthy and organic breakfast and lunch with homemade pastry at a reasonable price. I also will target all of the university students and staffs by offering them a discount with a reward card. Also I will hand out flyers to all nearby businesses in the area and advertise in the local newspaper biweekly. Moreover, I will extend my business to cater for all events such as: gaming tournaments, art show, Special events and more. If you are a loyalty customer you will receive additional discount on all catering. Since this is a newly develop area any new business open in the area will received free lunch for a day for employees and staff.

Debt to Equity ℎℎ ′ 9,771+1,885 Dividend Payout Inventory Turnover = 0.069 Working backwards from the income tax expense, we estimate income tax rate to be 34%. NOPAT is then Operating profit taxes, or 3,137*(1-0.34) = 0.319 Average

Our customers are the fast food restaurants, school cafeterias, hotel restaurants and grocery shopping centers.

These figures are not definite and will likely change over time as figures are being actualized every year. These assumptions were based on an article written by the National Restaurant Association where they stated that as long as the economy keeps doing well the estimated sales in restaurants will exceed $604 Billion in 2011 alone (National Restaurant Association, 2011). From the projected forecast of sales for 2011 we are assuming that the prosperity in growth will continue each year. However with any economy nothing is for sure and sales should be monitored and increasing prices to keep up with costs will most likely need to be reviewed bi-annually.

| If there are 2 million shares of stock in the new corporation, what would be the price per share and the book value per share? (Round your answers to 2 decimal places.)

The owner’s initial investment consists of $38,000 cash and $46,000 in land in exchange for its common stock.

Plyer's Shareholders' Equity at Book Value for 2015 = $ 1,580,000 - $ 375,000 –

The land was accounted for opportunity cost. If we don’t run the project, we can sell it and earn $6 million right now.

Market value per share = Book value per share = $12,000 / 750 shares = $16 per share

* Donations made by individual supporters will help to fund the purchase of the land.

More and more people like to eat outside in a restaurant. Restaurant services can help people establish the satisfaction of ingredients, provide considerate services, and save customers’ time. The restaurant industry occupies an important place in the service industry, and because the demand of customers is increasing, the demand on the level of service is becoming greater. The stages of the industry’s life cycle are typically separated into three stages: beginning, maturity, and recession. The restaurant industry is clearly in the maturity stage. For now, people usually can find what they want by using some Apps, and find the restaurants near them. It is convenient for people to eat in a restaurant. The trend of restaurant will be continued in next five years. The charts(4) below showed the restaurant industry sales have been increasing since 1970, and the restaurant sales was $709.2 billion dollars, the sales of restaurant industry included commercial restaurant services, eating places, bars and taverns, managed services, lodging places and retail, vending, recreation, mobile. Commercial restaurant services occupied the most sales from restaurant industry. The major emerging trend in restaurant industry is the way we manage restaurant, more and more technological products were used in restaurant, we use tablet to order food. Restaurant were using advanced technique to have a better dining experience, like the

...................................................10 Alternative 3 – Review Existing Locations..........................................................................................11 Alternative 4 – Expansion through Franchise Operations.....................................................................11 Alternative 5 – Expand Catering Segment ...........................................................................................12 Recommendations and Action Plans .......................................................................................................12 Recommendations ..............................................................................................................................12 Action Plans .......................................................................................................................................13 Contingency Plan ...................................................................................................................................14 Attachments ...........................................................................................................................................15 Exhibit 1.............................................................................................................................................15 Exhibit 2.............................................................................................................................................16

Market value proportions of: Debt = $1,147,200 / $4,897,200 = 23.4% Pref. Share = $1,250,000 / $4,897,200 = 25.5% Common equity = $2,500,000 / $4,897,200 = 51.1%

It is determined that the company worth is $856,518 with a share price of $351.03 per value as per the discounting dividend cash flow valuation approach..In appraising the anticipated premerger performance of the company, the weighted average cost of capital is computed; the worth of the WACC for FVC is 9.2% as depicted in

The risk premium should be calculated by using holding-period returns, as 9.90%-3.48%= 6.42%. Then we can compute the cost of equity is 3.48%+0.97*(6.42%) =9.71%. According to Exhibit1, 1987, we calculate the tax rate by dividing income tax over EBIT. $175.9/$398.9=44%. Then we can calculate the firm’s WACC = (1-44%)*(9.34%)*60%+9.71%*40%=7.02%.