How would describe hansson private label

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Hansson Private Label - Case Questions

1. How would you describe Hansson Private Label (HPL) and its position within the private label personal care industry? Compare HPL's size, profitability (profit margin), growth rate, and leverage (debt ratio) with its peers and discuss your findings.(Note: You are not given revenue growth rate for the peers, but the case talks about industry growth rate)

2. Discuss the motivation and strategic rationale for the possible expansion. What are the potential risks and rewards?

3. Using assumptions made by Executive VP of Manufacturing, Robert Gates, estimate the project's cash flows. Are Gates' projections realistic? If not, what changes might you incorporate? Do a sensitivity analysis with the assumption that both prices and expenses grow at a rate of 3% (i.e., recalculate cash flows and NPV with this assumption).

4. Using CFO Sheila Dowling's projected WACC schedule, what discount rate would you choose? Explain.

5. Estimate the project's NPV. Would you recommend that Tucker Hansson proceed with the investment? Explain.

Reference no: EM132448481

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