Flinder Valves and Controls, Essay

961 Words Jul 22nd, 2015 4 Pages
Assignment 1
Group member: Qihao Cao 17577761
Huiya Lin: 17578140
Jiejia Ren: 17578387
1. Relative strengths, weaknesses, opportunities and threats of FVC and RSE
a. SWOT Analysis FVC
Strength
The company depicts excellence standing in the most intricate stages of the business and thus frequently did prime agreement on extremely mechanical machine for the government.
Weakness
The weak economy in US market had affected the business operation and thus this posed the threat on the company performance under the challenging business environment with as well growth in completion combined with financial crisis.
Opportunity
The company depicts no stress in acquiring raw materials as well as problem with marketing plans since; the raw material is
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Opportunity
The company have many plans initiated to aid improve the company profit. The company had implemented information system in 2006 which had already indentified many opportunities for enhancing profits and revenues. The merger process calls for the increase in the level of sales to $3 billion within five years
Threat
In spite of the trust as well as sanguinity for the anticipated performance of the company, the
Security market still undervalues the company stock shares which will still discourages shareholders and investors into the business and thus it will hinder business growth.
b. FVC currently worth premerger
The value of FVC is $4,710,000 and $8,478,000 as per the book value of the company because, it will give rise RSE the sum value of asset for FVC that the shareholder of FVC will realize if the company is going to be liquidated. The book value approach allow for the assessment with market worth since, the book value points out if there is under or over valuation of the stock.
c. FVC worth assuming the merger occurs and the cost gains are derived
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

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