Essay on Hassan Private Label

1090 Words Apr 13th, 2013 5 Pages
Question 1: How would you describe HPL and its position within the private label personal care industry?
HPL is a major player in private label personal care industry. Private labels hold around 19% (around $4 billion) of personal care industry (around $21.6 billion). HPL holds approximately 28% share of this private label personal care market. Even though HPL is a small player in overall private label market with the revenues of approximately $700 million compared to overall private label market of $70 billion HPL is a major player in private label personal care industry.
Question 2: Using assumptions made by Executive VP of Manufacturing, Robert Gates (Exhibit 5 and table on page 3), estimate the project’s FCFs. Are Gates’ projections
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Based on estimated Debt to Value ratios and cost of debt estimates, WACC is estimated to be around 9%.
Question 4: Evaluate the NPV of the project under alternate terminal value assumptions. FREE CASH FLOW CALCULATION | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | | | | | | | | | | | | | | | | | | | Sales | | | | | 84,960 | 93,881 | 103,124 | 112,700 | 122,618 | 132,887 | 135,545 | 138,256 | 141,021 |

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