As a securities analyst you have been asked to review a valuation of a closely held business,
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¢ WAH and its principal competitors each operated more than 150 stores at year-end 2009.
¢ The average number of stores operated per company engaged in the retail autoparts industry is 5.3.
¢ The major customer base for autoparts sold in retail stores consists of young owners of old vehicles. These owners do their own automotive maintenance out of economic necessity.
a. One of RRGs conclusions is that the retail autoparts industry as a whole is in the maturity stage of the industry life cycle. Discuss three relevant items of data from Table D that support this conclusion.
b. Another RRG conclusion is that WAH and its principal competitors are in the consolidation stage of their life cycle.
i. Cite three relevant items of data from Table D that support this conclusion.
ii. Explain how WAH and its principal competitors can be in a consolidation stage while their industry as a whole is in the maturitystage.
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...
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