depository receipt); hybrid Eurodollar bond USING LVMH AND LI & FUNG (LF‚ OWNER OF TRINITY BRAND) AS BENCHMARKS‚ PROPOSE A METHOD TO ESTIMATE PRADA’S COST OF EQUITY CAPITAL. HINT: "DIVIDEND DISCOUNT MODEL" (RWJJ PP. 401-402). SEE EXHIBIT 10. ASSUME THAT DIVIDENDS FOR THESE COMPARABLES ARE PROJECTED TO GROW AT 5%. LVMH: R=Div/P + g = 1.77% + 5% = 6.77% Li & Fung: R = Div/P + g = 1.89% + 5% = 6.89% Therefore‚ Prada: R= (6.77% + 6.89%)/2 = 6.83% USING LVMH AND LI & FUNG AS BENCHMARKS‚ ESTIMATE THE MARKET
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fashion high street retail market‚ French connection own on overall market share of 0.2% being dominated by the likes retailers Zara‚ Topshop and Next.” To assess the company‚ this paper analyzed external and internal factors by utilizing PESTEL and VRIO framework and applied the result to SWOT analysis. Moreover‚ short-term and long-term strategies as well as an action plan were provided based on the assessment. 2. External and internal analysis 2.1 PESTLE analysis Figure 1 PESTLE analysis
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advantage. Strategic managers use RBV to assist in making directional decisions which must take into consideration the strategic management process‚ organisational climate‚ strategic liabilities and assets‚ dynamic capabilities and core competencies. The VRIO model will be discussed to assess how strong an organisations competitive advantage is. RBV encounters a level of criticized shortfalls which will be discussed and alternative organisational performance models which can be used in addition to RBV for
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ROLLS-ROYCE: INTERNAL ANALYSIS For the purpose of internal analysis‚ I have selected civil aerospace SBU of Rolls-Royce. This analysis has been done considering the fact that the case study was published in year 2005. Financial Analysis: Rolls-Royce has been generating higher margins in past few years. In last four years i.e. from 2002 to 2006 the operating profit has grown from £168 million to £692 million with the annual growth rate of 42.5%. The net profit has also increased at compound annual
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1) What is the problem facing Prada? The Prada fell into some financial trouble. It needed to raise more than 1 billion euros to meet the long-term debt maturing in one year in 2011 and also required extra capital to implement its expansion plan in Asia market to seize the opportunity in this area which has the highest growth rate compared to the other markets. The demand for this huge amount of capital is quite urgent. The Prada has tried several times for IPO‚ but all terminated by some unlucky
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COURSE: MBA-680-50-SUII12 Corporate Financial Theory SEMESTER: Summer Session II Aug 2014 Coursework 1 Chapters 4‚5‚7‚8‚9 PART 1 SELF-TEST QUESTIONS 1. Casino Inc. is expected to pay a dividend of $3 per share at the end of year-1 (D1) and these dividends are expected to grow at a constant rate of 6% per year forever. If the required rate of return on the stock is 18%‚ what is current value of the stock today? a. $25 b. $50 c. $100 d. $54 2. MJ Co. pays out 60% of its earnings
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was opened in Paris. That outlet is the biggest perfume outlet in the world. In 1997 Sephora was acquired by Louis Vuitton Moet Hennessy (LVMH) a well-established conglomerate based in Paris. Sephora is the retailer company with more than 200 high-end brands and 13000 premier products in the cosmetics‚ makeup‚ skincare‚ hair products. It is a member of LVMH group that surrounds the most influential indulgence brands from all over the world. Currently‚ it’s the retailer of perfumes and cosmetics
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Introduction Strategic management serves a really important role in every company. A good strategic management can lead a company to success such as gain better competitive advantage against rival companies which are in the same industry. On the other hand‚ a bad strategy can also lead a company to bankruptcy. In this paper‚ I’m going to analyze the pharmaceutical industry by using Walmart as my primary example. Examine Warlmart’s website and determine if the strategies pursued by this firm were
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ESCADA: Made of Steel Global Strategy and the Business of Luxury October 2‚ 2014 History Two phases: • Golden age (1976-‐1992): – Historical luxury brand since 1976 founded by Wolfgang and Margaretha Ley (family business) – Core competency : elegant evening gowns • color‚ quality‚ correct fit and
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1-13). Wal-Mart had many challenges to face in the discount trade. This case displays Wal-Mart’s competitive advantages‚ how they developed them‚ if they are sustainable and how they have battled with their competitors. Furthermore‚ through the VRIO Framework and Porter’s Five Forces Model‚ it helped analyze how Wal-Mart has strived passed its competitors and what keeps it the market’s frontrunner. Competitive Advantages Wal-Mart has a competitive advantage over other discount stores. Competitive
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