Case 72

After having a very successful performance and getting second place on the first Littlefield simulation game we knew what we needed to do to win the second simulation game. We were very eager to outperform our competition and we almost did so, but ended up in second place again with a cash balance of $2,660,393.

This memo is intend to present appropriate treatment of the ARO estimation problem experienced by the Lack of Information (LOI) based on the findings from interviews with all 50 of the warehouse managers and on-site visits at each of the 50 locations of its warehouses countrywide. The onsite observations search for any evidence of damages in both the on-site property like the roof, walls, floors and general conditions. The interview with the managers obtains information about the characteristics of the warehouses that are not readily observable. The information obtained is very important in the preparation of the fiscal

2. List the questions raised about this situation or that you think that the investigators should ask of the

Second, the manufacturing order costs for non-stocked items was calculated by dividing total manufacturing order costs for non-stocked items by the number of orders for non-stocked products. Non-stocked products have additional costs associated with processing orders that went above and beyond the costs associated with a stocked product. The third step involved determining what the S"A allocation factor would be for calculating the S"A volume related costs. This allocation factor would then be applied to manufacturing COGS. The fourth and final step involved the calculation of the operating profit based on backing out volume related costs from sales revenues followed by deducting S"A and manufacturing order costs from the resulting gross margin to arrive at a operating profit.

Suppose Ace, over the last few years, has had an 18 percent average return on equity (ROE) and has paid out 20 percent of its net income as dividends. Under what conditions could this information be used to help estimate the firm’s expected future growth rate, g? Estimate ks using this procedure for determining g.

If earnings' growth rates are often used as estimated of dividend growth rates. However, these forecasts

While other shelters might screen out the intoxicated, the active drug users, the ex-offenders, or those with

2. What would have been Martin’s return for years 2000, 2001, and 2002 if his portfolio had remained with its initial holdings?

We obtain the growth rate g in the dividend growth model by calculating the geometric average for the last 10 years based on Common DIV/SH.

Some applications of dividend discount modeling can be more complex. One method divides the future growth in dividends into three periods, all of which have different growth rates. This is useful when a company’s profits are expected to grow rapidly and then gradually decline to an industry average. The complexities of this model are outside of the scope of this report, and the model can easily be run using tools found online. The assumptions of this calculation as follows. Walmart is no longer in a growth phase, so this calculation assumes that it is at the transitional phase. Because of this, 2007 data is used to initialize the calculation (EPS, dividend, etc.,) and the ‘growth’ period was 3 years. Initial growth of EPS still assumed to be 10.4%. 14 transitional years, as required by the model (total of 17 years for growth and transition is required). All of these assumptions result in a 3 stage DDM

At table 55 sat Beck, my ex. Actually, he was a wonderful man with brown eyes, dark brown hair, and he was tall and muscular. The perfect man, anyone can dream of. But it didn't work with us both. I myself did not even know whether I still had feelings for him. Nevertheless, it tingled always in my stomach when I saw him. Like now. Had I still feelings for him? I didn't know it. Everything was so complicated. This profession was not the easiest. I always saw someone from my past. There was once Briley the bitch from my high school. Once, she dated Beck and came in here only to provoke me and they were kissing in front of my eyes. I still hated her. I couldn't stand her and will never do it. Fortunately, all of this was over now.

2) After finding the results of Question one, it is evident that SDI has more weaknesses than strengths as of 1995. If you look at the common size statements, Table 3, it shows that inventory increased as a percentage of sales, which indicates that a smaller percentage is being sold. All current liabilities increased as a percentage of total liabilities, which indicates that SDI is facing more debt. Figure one also clearly shows many of the weaknesses of SDI. Both liquidity ratios are below the industry average. Although the debt ratio appears to be above the industry average, it is actually a weakness because it indicates that SDI has more debt than equity. The only asset management ratio that is above industry average is the fixed asset turnover ratio, the rest are either equal to, or beneath their industry average. However, it’s not all bad; Figure one also shows that SDI has managed to hold a payout ratio on dividends that is 5 percent above the industry average.

AIC Systems, located in Taichung, Taiwan, is a manufacturer of printed circuit boards, primarily for motherboards and graphics cards for personal computers. The firm is considered an original design manufacturer (ODM) and takes an active role in innovating and designing each new generation of components. By doing in-house design and development, the company has been able to foster exclusive, long-term relationships with its customers. The firm decides to diversify its portfolio to include consumer electronics with a particular focus on mobile technology.

PREPARING MARKETING CASES FOR CLASS DISCUSSION, PRESENTATIONS AND WRITTEN ANALYSES Prepared by: Dr. Arjun Chakravarti, Assistant Professor, IIT Stuart School of Business I. BACKGROUND

The constant dividend growth model is useful for mature industries, where the projections of dividend growth are likely to be realistic.