Eskimo Pie Essay

The sustainable growth rate is the rate at which a firm can grow while keeping its profitability and financial policies unchanged. The model allows an analyst to isolate drivers that have led to changes in historical growth in order to isolate causes of change. It is represented in four steps.

According to the text, culture refers to the ways of acting and thinking, as well as the material objects that in harmony form a people’s way of life *. The physical environment of the Artic strongly influences the culture surrounding the Inuit people, mirroring a hunter and gathers’ society, as shown in the film, Eskimo Fight for Life.

In this case, Ice-Fili hold this competitive advantage since the company mainly use natural ingredients and do not use any preservatives or colorants (“Lakomka”). At the time of the case Ice-Fili’s ice cream are seen as a quality product which fit with the traditional recipe. At the opposite, Nestlé adds preservatives which distort the taste, but by using these ingredients, it decreases the total costs.

The current enterprise value is $41,335 million and the equity value is $34,455 million. According to yahoo finance, the shares outstanding of our company are 647.31 million, so we can calculate the stock price for next year is $53.23. It will increase in following years.

Ice-Fili’s marketing approach and product distribution could be seen as weaknesses in the company’s primary activities. In 2001 the firm started its first TV marketing campaign years after competitor’s advertised through the media outlets. To date Ice-Fili is still very inexperienced and far lacking of marketing strategies deployed by Western competitors such as Unilever and Nestle. Not only does Ice-Fili need to market more fiercely against competitors within industry, it must also compete against other consumables such as beverages and snacks. Another weakness is the distribution that is handed over to several distribution companies. There is a much higher chance (twice as likely) to find products of its biggest competitor Nestlé than those of Ice-Fili. Another detriment is how ice cream is viewed socially. Currently ice cream is primarily an impulse purchase. If Ice-Fili can change this outlook, it would result in an enormous

Our estimated cost of capital, 20.81%, is lower than Ricketts’ expected return, 30%-50%, thus the investment is worthy. However, it’s higher than other pessimistic members’ expected return, 10%-15%, making the decision more complex and requiring further valuation。

Statement of Purpose: The purpose of this analysis is to determine if Reynolds Metals (“Reynolds”) should accept Nestlé’s offer of $61 million for its holdings of Eskimo Pie. The crux of the issue is whether or not the projected income from a proposed Initial Public Offering (“IPO”) by Wheat First Securities (“Wheat First”) is reasonable and will actually result in proceeds between $61 and $68 million to Reynolds, the Reynolds family and the Reynolds foundation, as projected. To get at this question, this paper will seek to value Eskimo Pie as a stand-alone company, if the IPO option is selected.

The share price of $270,000 was significantly higher because the “fair value” as perceived by the dissenters, which accounted for the chance of an IPO. Taking into account the recently traded Kohler Co. share prices, the book value of a share, and the possibility of an IPO greatly inflated what the perceived value of each share should be. While Kohler believed their voting control and ownership structure would remain the same, the shareholders believed otherwise. Because shareholders assumed Kohler would go public, they argued for a higher valuation so as to receive the highest price, and thus profit, in the buyout.  So based on the highest MVE, we picked Masco as the comparable firm of choice. Using Masco’s MVE, $9838.8, and LTM EBIAT, $437.3, we solved for Masco’s P/E ratio, which was equal to 22.5. By multiplying the P/E ratio by Kohler’s LTM EBIAT (22.5 * $93.76), we projected a market value of $2,109,610,000.  To solve for estimated share price, we divided the projected market value by 7,587.89, the number of shares outstanding to obtain an estimated share price of $278,023.47. This estimate is near the $270,000 per share offer price.

3. If you wanted to buy LinkedIn’s stock, would you be willing to pay more than the value you derived above?

Ice-Fili is the top ice cream producer in Russia. Currently, the company is experiencing tough competition with Nestle, Baskin-Robbins and regional ice cream producers. Its loss in market share due to their poor quality decisions-making after Russia became an open marketing in 1992. Nestle took great advantage of Ice-Fili’s low reaction adjustment and is taking over their market.

In the long run, Nestlé can gain momentum in this segment if they are able to diversify the kind

The ice cream industry is very a competitive field. Blue Bell has many competitors with a bigger budget and a bigger distribution channel. The company still manage to produce top brand ice cream to please its customers. According to the U.S Market for Ice Cream, “Sales nearly $12.2 Billion in 2005 with the sales of frozen, yogurt frozen desserts at scoop shops, restaurants and vending outlets. Three years ago there was a tremendous interest in ice cream nutrition panel. Other competitors were introducing product such as; low crab ice cream, no sugar added and low fat ice cream.

6. What is your appraisal of Blue Nile’s financial performance based on the data in

E = 89.89%, D = 10.19%, re = 10.46%, rd = 7.16%, tax rate = 38%

The Inuit People The word Eskimo is not a proper Eskimo word. It means "eaters of raw meat" and was used by the Algonquin Indians of eastern Canada for their neighbours who wore animal-skin clothing and were ruthless hunters. The name became commonly employed by European explorers and now is generally used, even by them. Their own term for themselves is Inuit which means the "real people."