Determine share of the market

Assignment Help Finance Basics
Reference no: EM1362942

Video Concepts, Inc. markets video equipment and film through a variety of retail outlets. Presently, VCI is faced with a decision as to whether it should obtain the distribution rights to an unreleased film titled Touch of Orange. If this film is distributed by VCI directly to large retailers, VCI's investment in the project would be $150,000. VCI estimates the total market for the film to be 100,000 units. Other data available are as follows:

Cost of distribution rights for film
$125,000

Label design
5,000

Package design
10,000

Advertising
35,000

Reproduction of copies (per 1,000)
4,000

Manufacture of labels and packaging (per 1,000)
500

Royalties (per 1,000)
500

VCI's suggested retail price for the film is $20 per unit. The retailer's margin is 40 percent.

C. What share of the market would the film have to achieve to earn a 20 percent return on VCI's investment the first year?

 

Reference no: EM1362942

Information about cost of equity using capm

Find out the cost of equity of a firm that has a beta of 1.98 and a dividend yield of 6.58%? Suppose the risk free rate is 4.43% and the return last year of the S&P500 was

A capital goods manufacturer brings out a new

Suppose a Capital goods manufacturer brings out a new, more efficient machine.a. If the manufacturer hold a patent on this machine, who is likely to benefit the most from it.

Percent dividend yield on stock

The Bermuda Triangle Store pays a constant dividend. Last year, the dividend yield was 5.4 percent when the stock was selling for $15 a share. What must the stock price be t

Display the annual income statement

To retrieve the data for your company, enter the ticker symbol. Now choose Financials and then Income Statement from the menu. Display the annual income statement and copy t

Determining nominal annual interest rate

Find out the value at the end of four years of $10,000 investment (today) in a bank certificate of deposit (CD) that pays a nominal annual interest rate of 12 percent, compo

Maximize the market value of the stock

XYZ Company has earnings of $750,000 with 300,000 shares outstanding. Its P/E ratio is sixteen. The company is holding $400,000 of funds to invest or pay out in dividends.

What was alice’s net profit on the option

Alice Duever purchased a put option on British pounds for $.04 per unit. The strike price was $1.80, and the spot rate at the time the pound option was exercised was $1.59. As

Prepare a translation exposure report for sundance sporting

Using the current exchange rates and the nonconsolidated balance sheets for Sundance and its affiliates, prepare a consolidated balance sheet for the MNC according to FASB 52.

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd