I Use the information in Figure 2.9 relating to pricing/profitability, and score each venture in terms...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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
Expert Answer:
Related Book For
Entrepreneurial Finance
ISBN: 978-0538478151
4th edition
Authors: J . chris leach, Ronald w. melicher
Posted Date:
Students also viewed these accounting questions
-
Evaluate each of the following integrals, using a trigonometric substitution. Do not forget the back substitution. Solving using other methods is not acceptable. (A) 1- dx 4x+1 (B) - 1 x16-x -dxx
-
Following is financial information for three ventures: A. Calculate the ROA for each firm. B. Which venture is indicative of a strong entrepreneurial venture opportunity? C. Which venture seems to be...
-
Use the information in Figure 20.1 to answer the following questions: a. Which would you rather have, $100 or £100? Why? b. Which would you rather have, 100 Swiss francs (SF) or £100?...
-
Design a linear-time algorithm to sort an array of Comparable objects that is known to have at most three distinct values. (Edsger Dijkstra named this the Dutch-national-flag problem because the...
-
In Figure two long straight wires are perpendicular to the page and separated by distance d1 = 0.75 cm. Wire 1 carries 6.5 A into the page. What are the (a) Magnitude and (b) Direction (into or out...
-
Which governmental entities are required to have a single audit?
-
The accounts of Cascade Consulting, Inc., follow with their normal balances at December 31, 2010. The accounts are listed in no particular order. Requirements 1. Prepare the companys trial balance at...
-
George Robbins considers himself an aggressive investor. Hes thinking about investing in some foreign securities and is looking at stocks in (1) Bayer AG, the big German chemical and health-care...
-
Amanda's tech startup, "EcoInnovate," has recently launched a revolutionary solar panel technology, designed to significantly enhance energy efficiency for homes and businesses alike. This new...
-
Overview The milestone for Project One involves applying accounting principles and methods to long-term liabilities and equity. You will also evaluate these financial statement components for...
-
make this 2000 words : Introduction and Thesis: Anne Rice's vampire series, which ran from 1976 to 2003, is a basic pillar in the delicate mosaic of cultural creation, shaping vampire literature...
-
Calculate the income tax liability for 2017-18 of a non -Scottish taxpayer with a taxable income (after deducting any available personal allowance) of: (a) 1,830 (b) 32,300 (c) 67,833 (d) 320,000....
-
(a) A motor car with a retail price of 21,000 is leased for four years at a cost of 300 per month. The car is used only for trade purposes and has an emission rating of 152g/km. How much of the...
-
Geoffrey's income for 2017-18 consists of a salary of 114,600 and dividends received of 4,400. He makes qualifying Gift Aid donations of 7,200 during the year . He is not a Scottish taxpayer....
-
Malcolm's gross annual salary is 57,500. He also receives an annual bonus based on his employer's profits for the calendar year. H is bonus for the year t o 31 December 2016 was 8,350 (which he...
-
Roger began trading on 1 January 2011 , preparing accounts to 30 April each year. His first accounts were for the 16 months to 30 April 2012. In 2014 he decided to change his accounting date to 30...
-
Explain in detail the criminal liability versus tort liability of an accountant. Give examples of each.
-
How does health insurance risk differ from other types of insurance risk (e.g., automobile or homeowners insurance)? What is the difference between cost sharing and cost shifting? Is retiree health...
-
Describe how pseudo dividends are used in the equity valuation method.
-
Vail Venture Investors, LLC, has recently acquired a 40 percent equity ownership in Black Hawk Products, Inc., in exchange for a $5 million investment. Vail Venture Investors is interested in...
-
Voice River, Inc., has successfully moved through its early life cycle stages and now is well into its rapid-growth stage. However, by traditional standards this provider of media-on-demand services...
-
The red flag literature has been criticized for its generality. It is difficult to make general measures of problems operational. For example, a lack of management integrity has been cited as a red...
-
Related parties are generally cited as indicators of a higher risk of fraud existing for an auditee. The idea is that arms-length transactions in and of themselves exercise control over the propriety...
-
Untimely cutoffs of sales or cash recipts can occur due to delays in shipping, mishandling of consigned goods shipped as sales, retroactive posting of cash received after the year-end, or holding...
Study smarter with the SolutionInn App