Mercury Athletic Footwear: Valuing the Opportunity Group 1 Bushra Javed Butt M. Sharjeel Shahid Mahnoor Malik Uzair Nasir MBA II – Section A Submitted To: Sir Nawazish Mirza Introduction West Coast Fashions‚ Inc. (WCF)‚ a large designer and marketer of men’s and women’s apparel decided to dispose of one of their divisions; Mercury Athletic. John Liedtke‚ head of the business development for Active Gear‚ Inc. (AGI)‚ saw a possible opportunity for his company in acquiring Mercury. The footwear
Premium Free cash flow Investment Operating cash flow
endangered Active Gear’s growth. Mercury Athletic Footwear designs and distributes athletic and casual footwear dominantly to the youth market. Mercury competes in four main product lines: men’s and women’s athletic and casual footwear. Men’s athletic footwear is the leading product for Mercury Athletic. Women’s casual footwear is Mercury’s worst performing product and post-acquisition the line may be discontinued by Active Gear. The acquisition of the Mercury Athletic division has sources of potential
Premium Discounted cash flow Net present value Weighted average cost of capital
1. Mercury: The first planet closest to the Sun‚ Mercury‚ has a surface geology which is quite rocky‚ with heavy amounts of craters‚ boulders‚ and a lot of pulverized dust. It lacks in atmosphere‚ due to its moderate day-night variations‚ particularly in heating by solar energy‚ and its temperate weather swings as a result of that energy. Temperatures on Mercury range from low (90 Kel.) to high (700 Kel.) though‚ despite its many observations‚ it is however quite dead‚ and it has been for some time
Premium Earth Solar System Moon
Mercury athletic footwear Group 7 Contents Executive Summary & Overview of Problems 3 Analysis on Mercury acquisition 4 1. Reasons why Mercury is an appropriate target for AGI 4 2. Estimation the value of Mercury based on discounted cash flows and Liedtke’s base case projections. 4 a. Estimation of the weighted average cost of capital 5 b. Estimation of the free cash flows from 2007 to 2011 5 c. Estimation for long-term growth rate and estimate the terminal value 5 d. Estimation value of
Premium Management Psychology Education
Intro: Mercury can be used in many different products such as barometers‚ florescent lamps‚ and electrical switches and can be in the fish that we eat‚ whether the fish was caught in a local lake or bought from the grocery store. Mercury is a naturally occurring element in the earth’s crust that can be moved around from volcanoes‚ coal burning plants‚ mining‚ and other natural or human actions. “Mercury is well-documented as a toxic chemical that is atmospherically transported on a local‚ regional
Premium Management Strategic management Human rights
Abstract Mercury exposure has become a serious‚ mainstream topic that has attracted mass amounts of global attention. Exposure to toxic levels of mercury is devastating to the developing central nervous system and general physiological systems in humans. Studies have suggested that mercury exposure can affect limb coordination‚ academic performance and mercury may have a role in other developmental disorders. There are many ways humans may be exposed to mercury in their daily lives. Populations
Premium Mercury
MATERIAL MANAGEMENT STORES LAYOUT AND PRINCIPLES OF STORES BY – CHANDNI BHATT (283009) ARBAAZ KHAN (283019) INDRANEIL MUKERJEE (283035) HARITHA SINGH (283054) STORES LAYOUT AND PRINCIPLES OF STORES INTRODUCTION- STORES LAYOUT AND DESIGN It means the design of a store’s interior to encourage people to enter the store and expose them to the maximum variety of merchandise within the space available. For example‚ some stores have the fresh fruit and vegetable
Premium Retailing Technical drawing Department store
Personal Care period 4 Michelle Manobanda 2012 The FDA permits the use of mercury compounds in eye makeup at concentrations up to 65 parts per million. The preservative thimerosol‚ found in some mascaras‚ is a mercury-containing product. Mercury is associated with a host of health concerns including allergic reactions‚ skin irritation‚ toxicity‚ neurological damage‚ bioacculumation‚ and environmental damage. Mercury readily passes into the body through the skin‚ so normal use of the product results
Premium Cosmetics Skin Mercury
Mercury is a metallic element that is naturally found in rocks within the earth’s crust. It is dispersed into the environment in various ways such as soil‚ weathering of rocks‚ volcanoes‚ mining coal combustion‚ power plants‚ municipal waste and even the products used in the household or for health. Since mercury naturally occurs in the environment‚ it can exist in several forms and there are three main forms it takes on; there is Elemental mercury‚ organic mercury and inorganic mercury and each
Premium Mercury Chemical element Atmosphere
Jide Wintoki From: Richard Smith‚ Scott Mitchell‚ Zack Gregory Re: Mercury Athletic Acquisition Based on our analysis of Mr. Liedtke’s base case projections for a potential acquisition of Mercury Athletic‚ we have concluded that this is a positive net present value project‚ and that AGI should proceed with the acquisition. Under Mr. Liedtke’s operating assumptions‚ we calculate the value of Mercury’s discounted cash flows to be $624.446 million‚ and the acquisition price to be $156.643 million‚ yielding
Premium Net present value Discounted cash flow Weighted average cost of capital