Biz 1000 Study Sheet

Biz 1000 Study Sheet - Selling Amortization Exp....

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S w Business 1220 General Management Study Sheet STRATEGIC DECISION MAKING Internal Implications What is the firm’s competitive advantage and is it sustainable? What is preventing competition from entering our market? Key Success Factors? FIRM VALUATION 1. Net Book Value NBV = ASSETS - LIABILITIES 2. Economic Appraisal EA = FAIR MARKET VALUE - LIABILITIES 3. Capitalization of Earnings CAPITALIZATION OF EARNINGS = PROJECTED NET PROFIT AFTER TAX x P/E MULTIPLE Projected Income Statement Net Sales (Is there a change in sales?) COGS Gross Profit Operating Expenses (Fixed $, Variable %) Gen. & Admin.
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Unformatted text preview: Selling Amortization Exp. (Amortization adjustment based on useful life of new asset) Other Exp. & Income (Adjustment to interest if there is a new LT loan) Net Profit before Tax Tax Expense (If not given, 25%) Net Profit After Tax PAYBACK BREAKEVEN Payback = Investment Breakeven = Fixed Costs Total Net Benefit Unit Contribution (SP VC) THE DECISION Base decision on fit with Can, Want, Need, financial feasibility, and potential outcomes. Discuss risks and issues you must overcome with the alternative(s) you have selected. CAN WANT NEED Company Analysis Finance Marketing HR Operations Management Preferences Motivations Aspirations Risk Tolerance Industry Analysis PEST Competition Consumer Distribution...
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This note was uploaded on 10/12/2011 for the course SOCIAL SCI 1000 taught by Professor House during the Fall '09 term at UWO.

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