hbc-case-3-outline-final.docx - Hbc case 3 Outline...

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Hbc case 3 Outline: Financial metrics: ROI Cost of Capital Retention Rate Customer LIfetime Value: Margin*(RetentionRate(%)/(1+Discount Rate–Retention Rate)) Prospect Lifetime Value (PLV) : Acquisition Rate % *(Initial Margin ($) + CLV($)) – Acquisition Spending ($) Breakeven Acquisition Rate = Acquisition Spending ($) / Initial Margin ($) + CLV ($) To determine the financial health: Sales Growth : an important driver of the need to invest in various types of assets and of the company’s value. Also provides some indication of the effectiveness of a firm’s strategy and product development activities, and of customer acceptance of a firm’s products and services. Return on Capital: (Net Income-Dividends)/(Debt + Equity)
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  • Summer '18
  • Prof Apunda Nyang' There Lach
  • CLV

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