...Rosetta Stone: Pricing the 2009 IPO In the following case study we intend to analyse Rosetta Stone’s 2009 IPO. The main purpose is to come up with a reasonable estimate of the price at which the firm’s shares should be initially offered. This estimation is preceded by a general consideration of the advantages and disadvantages that going public might have for Rosetta Stone. Following this qualitative analysis, we then estimated the price at which Rosetta Stone’s shares should be offered in the 2009 IPO. In order to do so, we first determined the current market price for shares of the firm by employing a market multiples as well as discounted cash flow valuation. On the basis of these values, we estimated the IPO price and then gave a final recommendation regarding the price in which we also considered factors beyond the pure numbers, such as the difficult market environment. 1. Advantages of going public First of all, the IPO would help Rosetta Stone raise equity, giving the company the opportunity for further investment with the aim of establishing its brand globally and expanding its geographic outreach. As a publicly traded company, Rosetta Stone will receive more exposure to both national and the international capital markets, creating the opportunity to reach more investors. For example, the planned stock market listing would allow institutional customers, who currently represent 20% of Rosetta Stone’s customer base, to buy shares. Another important advantage of going...
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...concerning XO Computers. Included in this analysis are marketing objectives, product adaptation, promotion mix, channels of distribution, and price determination. Although the main use of these computers was meant to be sold to schools for a low price, our company has found that these computers can be successfully sold in other markets as well. In Colombia, we can market our XO computers to both the rich and the poor. We will aim to target children of Colombian coffee farmers who strive to learn but cannot afford expensive technology. In fact, there are 618,199 households in the coffee-growing region of Colombia. In addition, there are 653,471 children aged between 5-19 years old (average of one school-aged child per household) in these areas. About 39% of the population in the coffee-growing region (made up of Caldas, Risaralda, and Quindío regions) did not finish primary school and/or secondary school. So, we believe that there is a large market that would be interested in our product. The price will be set at $250, which we believe is a reasonable price. Based on the average income of a Colombian worker, we believe that our product will be well received in the Colombian coffee regions. We believe that the adults will want to invest in their child’s future, as well as buying a well-made piece of technology for an inexpensive price. Table of Contents Introduction 4 Part 1: Market Audit and Competitive Market Analysis The Product 5 The Market 7 Part 2: Preliminary...
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...people would agree that higher education is worth the price, in our society today, students are expected to follow the path of day care, grade school, middle school, high school and hopefully college. Higher education has always been the gateway of accessing higher salary occupation. But the question I have always asked is that does the cost of higher education worth the price? College education is becoming more expensive than ever. Today, it takes 40 percent of their paycheck to go to college. This is an indication that college education cost is on the increase. My uncle Salman was student five year ago, he still paying student loans accrued during his first attempt at completing an undergraduate degree that was defaulted due to the inability to repay the debt. Many college students would feel that college is a waste of money because they do not learn what they want to. Instead they have to take classes that have close to nothing to do with their major but are only taking these classes in Page 2 Order to fulfill a general educational requirement. Higher education could raise the student’s chance of economic success in the future. Some of student should not able to go through college, because they paying for money for college. Americans have always been taught that getting a higher education is crucial to be successful in life, and going to a university is just as important because they think that’s where they will get the best education, even if that means taking out...
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...Business Writing Portfolio Natasha Allan XCOM/285 Essentials of Managerial Communication University of Phoenix Reflection Reflecting back on the Essentials of Managerial Communication and the last nine weeks, there have been several key points that will benefit writing skills in the workplace. The most important lesson learned is how to tailor a message for the audience which will receive it. A manager must know how to approach an audience be it an employee, a member of management or a customer. Each audience may need to be informed of the same information, but the way a manager presents the information to each should be different. A manager should also be aware of ethics and personal privacy when writing. It is easy for a manager to inadvertently create a problem for the company by doing something considered unethical by some or by invading an employee’s privacy. This course helped to understand how a manager should consider ethics and privacy when writing. This course also covered the considerations a manager must give an audience when deciding how much the audience knows about the subject matter. A manager does not need to assume the audience knows more information than it does, but he must also not bore an audience with subject matter the audience already knows. Lastly, a manager must keep in mind formality of documentation. A memo should be a more formal document than an e-mail. An e-mail to a fellow employee can be more informal than an e-mail to someone...
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...1 The spot price of a widget is $70.00. With a continuously compounded annual risk-free rate of 5%, we can calculate the annualized lease rates according to the formula: F0,T = S0 × e( r −δl )×T ⇔ F0,T S0 = e( r −δl )×T ⇔ ⎛F ln ⎜ 0,T ⎝ S0 ⎞ ⎟ = ( r − δ l) × T ⎠ ⇔ δl = r − 1 ⎛ F0,T ⎞ ln ⎜ ⎟ T ⎝ S0 ⎠ Time to expiration Forward price Annualized lease rate 3 months $70.70 0.0101987 6 months $71.41 0.0101147 9 months $72.13 0.0100336 12 months $72.86 0.0099555 The lease rate is less than the risk-free interest rate. The forward curve is upward sloping, thus the prices of exercise 6.1 are an example of contango. Question 6.2 The spot price of oil is $32.00 per barrel. With a continuously compounded annual risk-free rate of 2%, we can again calculate the lease rate according to the formula: δl = r − 1 ⎛ F0,T ⎞ ln ⎜ ⎟ T ⎝ S0 ⎠ 83 ©2013 Pearson Education, Inc. Publishing as Prentice Hall 84 Part Two/Forwards, Futures, and Swaps Time to expiration Forward price Annualized lease rate 3 months $31.37 0.0995355 6 months $30.75 0.0996918 9 months $30.14 0.0998436 12 months $29.54 0.0999906 The lease rate is higher than the risk-free interest rate. The forward curve is downward sloping, thus the prices of exercise 6.2 are an example of backwardation. Question 6.3 The question asks us to find the lease rate such that F0,T = S0. We take our pricing formula...
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...Tam Bui Research and Writing Mary Beth Hoag 4/26/2014 Rising cost of college education People who possess a degree have a better chance of finding successful careers. However, a college education has been getting increasingly more difficult by the sky-rocketing costs of college tuition. The authors of “Administrative costs in higher education: how fast are they really growing?” state that: “The College Board says the average tuition and fees at public four-year colleges and universities increased by 27 percent beyond the rate of inflation over the five years from the 2008-09 academic year to 2013-14. After adjusting for inflation, the cost of tuition more than tripled between 1973 and 2013” (Hedrick et al 124). The tuition cost now becomes a cause of considerable public concern because it is very high compared to how the economy has been and how wages and financial aid have not risen with the cost of tuition. With the cost of college rising, many have asked a question: Is a college education worth the cost? Anyway, it cannot be denied that a college education always remains an important investment for the future. Tuition is usually the first thing that comes to mind when planning for higher education. It is the largest portion of the bill when attending a college or university. Tuition is a term that refers to tuition, fees, and room and board charges per student. According to Robert Martin, the author...
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...© 2010 Pearson Education Canada Will the Canadian economy weaken through the next year and shrink, or will it remain strong and expand? To assess the state of the economy and to make big decisions about business expansion, firms use forecasts of GDP. What exactly is GDP? How do we use GDP to tell us whether our economy is in a recession or how rapidly our economy is expanding? How do we take the effects of inflation out of GDP to reveal the growth rate of our economic well-being? And how to we compare economic well-being across countries? © 2010 Pearson Education Canada Gross Domestic Product GDP Defined GDP or gross domestic product is the market value of all final goods and services produced in a country in a given time period. This definition has four parts: Market value Final goods and services Produced within a country In a given time period © 2010 Pearson Education Canada Gross Domestic Product Market Value GDP is a market value—goods and services are valued at their market prices. To add apples and oranges, computers and popcorn, we add the market values so we have a total value of output in dollars. © 2010 Pearson Education Canada Gross Domestic Product Final Goods and Services GDP is the value of the final goods and services produced. A final good (or service) is an item bought by its final user during a specified time period. A final good contrasts with an intermediate good, which is an item that is produced by one firm...
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...Women The radical move of switching to the 4+4+4 education system has increased the tendency of girls, who are fifth and sixth graders, to abandon their education. The allowance of homeschooling for the high school students resulted in over 100,000 female students to abandon their education within the first year of its introduction. Vocational and technical schools which train personnel for the labor market are really inefficient in routing female students to new professions. The labor force participation rate of Turkish women is way behind the 1990 rates and is very low by international standards. In 2012, the labor force participation rate of Turkish women was 29%, whereas this rate was 24% in the rural areas. The labor force participation rate of women in EU and OECD countries amount to 60%. Turkey ranks last with its women labor participation rate in OECD countries and there is also a huge difference between the labor participation rate of Mexico which is last but one in the ranking list with 47.1%. Many women are directed for not working or working only in certain job fields due to reasons like “this work environment is not suitable for women” or “that work is against our customs and traditions”. Rights like leaving the job with severance pay for newly-wed women or extended maternity leave, which came into force within the AKP government’s period, are not encouraging for women employment. According to a World Bank report, women in Turkey are paid 20% less in average...
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...q23rnx5zklvx22ohttp://www.mediafire.com/?jlwa859lj1upzqo,http://www.mediafire.com/?2dy3ddf59oq1dt0,http://www.mediafire.com/?q23rnx5zklvx22ohttp://www.mediafire.com/?jlwa859lj1upzqo,http://www.mediafire.com/?2dy3ddf59oq1dt0,http://www.mediafire.com/?q23rnx5zklvx22ohttp://www.mediafire.com/?jlwa859lj1upzqo,http://www.mediafire.com/?2dy3ddf59oq1dt0,http://www.mediafire.com/?q23rnx5zklvx22ohttp://www.mediafire.com/?jlwa859lj1upzqo,http://www.mediafire.com/?2dy3ddf59oq1dt0,http://www.mediafire.com/?q23rnx5zklvx22ohttp://www.mediafire.com/?jlwa859lj1upzqo,http://www.mediafire----------------------- Page 1----------------------- S E IZA DP No. 3827 I R E S R E P Rising Tuition and Enrollment in A P Public Higher Education N O Steven W. Hemelt I S Dave E. Marcotte S U C S I D November 2008...
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...nightmare for families.” Barbra Mikuski’s quote holds true to many American families in our society today. In recent discussions of student loan debt, a controversial issue has been whether or not colleges should give more opportunities for students to leave college debt free. On the one hand some argue that students should work to pay for their education themselves. College students personal agenda’s entail getting a job, working hard, and getting scholarships to support themselves throughout their college experience. Students should not assume that government or college aid will cover all of their financial costs, students should anticipate and accept the responsibility...
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...influence purchase intention including Perceived quality, Loyalty, Price consciousness, and Risk averseness. There are several objectives in our research that we have conducted. First, in order to measure consumer’s purchase intention of Toyota cars since consumer behavior is the most critical factor that we most concerned. Second objective is to determine customers’ opinion towards Perceived quality, Loyalty, Price consciousness, and Risk averseness. Third, we would like to investigate relative importance of relationship between 4 independent factors and Purchase intention of Toyota cars and the last objective is to study whether the most important factor relating to purchase intention is influenced by customer characteristics For the results that we have conducted the research about the purchase intention of Toyota cars, we can conclude that firstly there is high purchase intention for Toyota cars. Secondly, Loyalty and Price consciousness are significant factors that influence customer purchase intention. Thirdly, income, gender, age, education, and number of members in the family which are the demographic factors do not influence customer opinion about factor relating to purchase intention. Finally, Occupations show the significant difference in purchase intention of Toyota cars. Furthermore, after we conducted the research, we found out that Toyota should focus on loyalty and price consciousness of consumers because they are both strongly related...
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...Semester 1, 2012 Week 9: Innovation II Product Innovation Dr Gary Buttriss 9.1 What is a product-service system? What may be the impact on its own sustainability of a corporation currently providing products moving towards a product-service system? (See especially reading 9.1.) Answer • What is a product-service system • “A marketable set of products and services capable of jointly fulfilling a user‟s need. The product/service ratio in this set can vary, either in terms of function fulfillment or economic value. (p.238) • Also a system of products, services, supporting networks and infrastructure designed to be competitive, satisfy customer needs and have a lower environmental impact than traditional business models (p. 239) • Impacts on sustainability of a corporation • Drivers: Can provide access to new strategic markets opportunities, market trends and developments and potentially stay competitive as patterns of production and consumption are transformed. • Barriers: Fundamental cultural shifts are required. Markets and products may be hard to develop, consumers may resist. MGMT2001 - Corporate Sustainability 2 Context and Characteristics • Blurring of manufacturing and service: The role of services in providing value is ever more important. Added value is created by technological improvments, intellectual property, product image and brand names, aesthetic design and styling that differentiate and diversify products. Functional economy: Function...
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...AN INDUSTRIAL PROJECT ON ASSEMBLED COMPUTERS PREFERENCE OVER BRANDED COMPUTERS AT NOBLE I’TECH NEW MARKET, PAKYONG AN AUTHORISED STUDY CENTRE MANIPAL INSTITUTE OF COMPUTER EDUCATION SUBMITTED ON PARTIAL FULFILLMENT OF MASTERS IN COMMERCE (M.COM) PREPARED BY: NAME: BINOD DANGAL REGISTRATION NO.: 09SU1615 ROLL NO.: 12SGMCOM001 UNDER THE GUIDANCE OF EXTERNAL GUIDE INTERNAL GUIDE BHIMLALL KHATIWARA DR. JIBAN UPHADYAYA (CENTRAL INCHARGE) (ASISTANT PROFESSOR) SUBMITTED TO COMMERCE DEPARTMENT SIKKIM GOVT. COLLEGE ABBREVIATIONS MICE : Manipal Institute of Computer Education DTP : Desk Top Publishing RAM : Random Access Memory ROM : Read Only Memory SMPS : Switch Mode Power Supply VGA : Video Graphic Adapter ATM : Automatic Teller Machine CAGR : Compound Annual Growth Rate PREFACE As we know very well that today’s world is a computer world where every task is done by the computer. And it is important to have computer knowledge for every individual. Giving priority to this, Manipal Institute of Computer Education is trying to fulfil the needs of common people by promoting computer service. The project entitled “Assembled Computer preference over Branded Computers” have prepared strictly in accordance with the format describe by the University. The project has been divided into 5 chapters. Each chapter has been divided into further...
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...Marketing principles Price discrimination Outline 1. Introduction............................................................................................................................3 2. Conditions for price discrimination........................................................................................3 3. Types of discrimination..........................................................................................................4 4. Advantages/Disadvantages of price discrimination...............................................................5 5. Economic explanation.............................................................................................................6 6. Examples of price discrimination......................................................................................7-16 7. Price discrimination in universities..............................................................................17 - 23 8. Summary.............................................................................................................................24 What is price discrimination? The goal of every business is to maximize its profits and they can achieve this goal by successfully determining the price of their products. There are many different ways to deal with determining the price of the products. All of these ways are called – pricing strategies. Price discrimination is one of many ways how companies may determine the price of their product...
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...international working experiences or not. The survey showed that only 3% of students have had an experience in a foreign country, we can so conclude that the market is virgin and that our new service has the advantage of innovation. Most of the students (68%) who participated in our survey confirmed that they want to go abroad for an internship, 12% said that they would like to go abroad if some conditions are available like a decent salary or parental approval. Only 20% confirmed that they don’t want absolutely to have an international experience. The last two questions showed that the market holds great opportunities for the new service of BN Overseas Educational Services. Beside our calculations showed that the potential Market contains 12.000 Students. Our survey showed that BN Overseas Education Services is not famous among University Students, only 4% confirmed to have heard about it. So it’s important that the company relies on effective promotion tools in order to improve its notoriety. Unlike BN Overseas Education Services, AIESEC is famous among University Students, 26% of students said that they know about it. So, in order to enhance the promotion of the new service, the company should rely on the AIESEC’s notoriety. PREFERENCES: In which zone you would like to have your internship? Our survey showed that most of the students want to have an...
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