I Use the information in Figure 2.9 relating to pricing/profitability, and score each venture in terms...
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I Use the information in Figure 2.9 relating to pricing/profitability, and "score" each venture in terms of potential attractiveness. This is located in the VOS tab below Pricing Profitability Gross margins After-tax margins Asset intensity ROA Total points Venture XX Venture YY Net Profit Total Assets Venture ZZ If each venture had net sales of $10 million, calculate the dollar amount of net profit and total assets for Venture XX, Venture YY, and Venture ZZ. Venture XX Venture YY $ 500,000.00 $ 1.500,000.00 1000000 1500000 Venture ZZ $ 2,500,000.00 7500000 B. Financial Ratios and Performance Following is financial information for three ventures: After-tax Profit Margins Asset Turnover (times) ROA % Venture XX 5% 2 10% Venture YY 15% 1 Which venture is indicative of a strong entrepreneurial venture opportunity? 15% Venture ZZ 25% 3 75% FIGURE 2.9 FACTOR CATEGORIES Industry/Market Market size potential Venture growth rate Market share (Year 3) Entry barriers Pricing/Profitability Gross margins After-tax margins Asset turnover Return on assets Financial/Harvest Cash flow breakeven Rate of return IPO potential Founder's control Management team Experience/expertise Functional areas Flexibility/adaptability Entrepreneurial focus Noton: Maria HIGH >$100 million >30% >20% (leader) Legal protection >50% >20% >3.0 turnover >25% POTENTIAL ATTRACTIVENESS <2 years >50% per year <2 years Majority Industry/market All covered Quick to adapt Full team AVERAGE $20-$100 million 10%-30% 5%-20% Timing/size 20%-50% 10%-20% 1.0-3.0 turnover 10%-25% 2-4 years 20%-50% per year 2-5 years High minority General/general Most covered Able to adapt Founder LOW <$20 million <10% <5% (follower) Few/none <20% <10% <1.0 turnover <10% >4 years <20% per year >5 years Low minority Little/none Few covered Slow to adapt None I Use the information in Figure 2.9 relating to pricing/profitability, and "score" each venture in terms of potential attractiveness. This is located in the VOS tab below Pricing Profitability Gross margins After-tax margins Asset intensity ROA Total points Venture XX Venture YY Net Profit Total Assets Venture ZZ If each venture had net sales of $10 million, calculate the dollar amount of net profit and total assets for Venture XX, Venture YY, and Venture ZZ. Venture XX Venture YY $ 500,000.00 $ 1.500,000.00 1000000 1500000 Venture ZZ $ 2,500,000.00 7500000 B. Financial Ratios and Performance Following is financial information for three ventures: After-tax Profit Margins Asset Turnover (times) ROA % Venture XX 5% 2 10% Venture YY 15% 1 Which venture is indicative of a strong entrepreneurial venture opportunity? 15% Venture ZZ 25% 3 75% FIGURE 2.9 FACTOR CATEGORIES Industry/Market Market size potential Venture growth rate Market share (Year 3) Entry barriers Pricing/Profitability Gross margins After-tax margins Asset turnover Return on assets Financial/Harvest Cash flow breakeven Rate of return IPO potential Founder's control Management team Experience/expertise Functional areas Flexibility/adaptability Entrepreneurial focus Noton: Maria HIGH >$100 million >30% >20% (leader) Legal protection >50% >20% >3.0 turnover >25% POTENTIAL ATTRACTIVENESS <2 years >50% per year <2 years Majority Industry/market All covered Quick to adapt Full team AVERAGE $20-$100 million 10%-30% 5%-20% Timing/size 20%-50% 10%-20% 1.0-3.0 turnover 10%-25% 2-4 years 20%-50% per year 2-5 years High minority General/general Most covered Able to adapt Founder LOW <$20 million <10% <5% (follower) Few/none <20% <10% <1.0 turnover <10% >4 years <20% per year >5 years Low minority Little/none Few covered Slow to adapt None
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Related Book For
Entrepreneurial Finance
ISBN: 978-0538478151
4th edition
Authors: J . chris leach, Ronald w. melicher
Posted Date:
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