Opening the boutique in the World Trade Center in New York and;
Rejecting the Chinese investor's offer.
For the first decision I recommend to them, personally, I would support myself by following reasons 1.After condsidering the information I have in the case pages, I think it would be a nice id
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The costs for the World Trade Center might be higher, however, after establishing my forca ##########################################################################
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In that way, no matter the furture market we estimate is the best (20% g)
least 34,9 to 35,062 in 2014, which both mean that we need at least 97 cakes made per da If we keep our COGS at 50% as we assumed, in the best condtional we can ge
$26,218,722 DCF in 5 years in wroest condition.
If we keep our EBIT for zreo as we assumed, in the best condtional we can
get $18,246,011 DCF in 5 years in wroest condition.
If we want to keep our COGS at 50%, we at least 48,600 cakes in 2014, whic
information offered in the case file and on Interenet, I conclude that Lady M is fully cap In all these different conditions, Lady M can get their initial investment for the World T 2.Based on the information offered by the case, I can approximately assumed a 5-year valuati
And we can know that, in the Year 5 (2019), Lady M can have a terminal value of $61,472,96 So, it is no doubt that Lady M should expand its market. Also, it should reject the Chines Even if in 2019, the 10-million-dollar would take about 1/3 of Lady M's equity stakr, and As a matter of fact, Lady M open its own botique in IFC, Shanghai, China.
Based on the information I can get online and Lady M's official We-Chat Public Account, we Although, in China, Lady M sells its cakes by sildes rather than entir cak
it sells in China is considerable--arround $108 per cake while its average price in New Yo ##########################################################################
Based on the assumption gave in the case file for Lady M, we can estimate the EBIT for Lad ##########################################################################
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Besides, Mr. Romaniszyn also shows his plan to open another new botique in
Shanghai. Just as what he did in New York, that knid of large cities need more than 1 Lady ##########################################################################FIN 6311-501
Lady M Valuation and Financing
Yuhao Wang
09/14/17
After considering the information I have in the case pages, I think it would be a nice idea for Lady M to #######
The costs for the World Trade Center might be higher, however, after establishing my
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In that way, no matter the future market we estimate is the best (20% g) or the worst (
If we keep our COGS at 50% as we assumed, in the best conditional we can get $47,395,438 DCF in 5 If we keep our EBIT for zero as we assumed, in the best conditional we can get $33,554,519 DCF in 5 If we want to keep our COGS at 50%, we at least 48,600 cakes in 2014, which means about 135 cakes In all these different conditions, Lady M can get their initial investment for the World Trade Location b #######
As a matter of fact, Lady M open its own boutique in IFC, Shanghai, China. Based on
Although, in China, Lady M sells its cakes by slides rather than entire cakes, the estimate price for per c #######
#######uld decide that:
myself by following reasons:
think it would be a nice idea for Lady M to open a new boutique in World Trade Center Loacation. after establishing my forcasting and analysising, it could be an acceptable investment.
l investment for the World Trade Location back in arround 1 year time.
ely assumed a 5-year valuation for Lady M staring at 2014 as year 0.
terminal value of $61,472,967, and DCF of $39,130,992.
it should reject the Chinese investor's offer of 10-million-dollar for Lady M's entire Chinese market. Lady M's equity stakr, and as for the Chinese investor, it is a big win investment.
hai, China.
l We-Chat Public Account, we can know that:
an estimate the EBIT for Lady M IFC's store would be arround 20% in these 5 years.
ue in Xintindi, Shanghai--another busy center in
cities need more than 1 Lady M botiques in them.
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% g) or the wroest (5% g), we need to make at
t least 97 cakes made per day.
an get $47,395,438 DCF in 5 years while we can get
can get $33,554,519 DCF in 5 years while we can
which means about 135 cakes per day. Based on the ude that Lady M is fully capable of achieving this goal.
r cakes, the estimate price for per cake average
its average price in New York is only $80 per cake.
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##################################################nice idea for Lady M to open a new boutique in World Trade Center Location.
stablishing my forecasting and analyzing, it could be an acceptable investment.
or the worst (5% g), we need to make at least 34,9 to 35,062 in 2014, which both mean that we need at least 97 cakes mad can get $47,395,438 DCF in 5 years while we can get $26,218,722 DCF in 5 years in worst condition.
can get $33,554,519 DCF in 5 years while we can get $18,246,011 DCF in 5 years in worst condition.
which means about 135 cakes per day. Based on the information offered in the case file and on Internet, I conclude that Lady for the World Trade Location back in around 1-year time.
hina. Based on the information I can get online and Lady M's official We-Chat Public Account, we can know that:
akes, the estimate price for per cake average it sells in China is considerable--around $108 per cake while its average price intion.
ire Chinese market.least 97 cakes made per day.
nternet, I conclude that Lady M is fully capable of achieving this goal.
e can know that:
ke while its average price in New York is only $80 per cake.下载本文
