scroll to top
Stuck on your essay?
Get ideas from this essay and see how your work stacks up
Word Count: 486
There are many indicators used in determining a companys net worth These same indicators are used if a companys future earning is ever in question Discount rates are used to fill the void of such future earnings that may have been lost by circumstances out of the companys control The Discount rate reflects the rate of the payee rather than the one being paid The strength of the company determines the size of the discount rate If you have a weak company one can expect a high discount rate In the case of the two companies chosen for this paper one has an established line with a growing following and predictable plans for future growth While the other is a start up that seemingly has neither collateral nor a solid base from which to work Salvadors is a manufacturer of authentic Hispanic foods Their products are positioned at the high end of the market in terms of both quality and price They have been in business for three years and have grown in popularity Within the next three years they plan on increasing sales by two million dollars Salvadors also would like gross margins to be above 55 while hoping to have 40 different outlets that will distribute their products The Hispanic community was initially targeted because of its exciting growth rate The market has indicated that their products have broader appeal and Salvadors has recognized this and acted accordingly The community has been growing at 22 a year almost double the average of the overall US population Salvadors Hispanic food is a solid company It can be said with confidence that Salvadors will remain in business and making a predictable profit for the balance of their business life In their case the rate of return of the discount rate should be chosen from low-risk investment vehicles giving them a low discount rate In contrast TLC Wedding Consultants is a full service company that provides
@Kibin is a lifesaver for my essay right now!!
- Sandra Slivka, student @ UC Berkeley
Wow, this is the best essay help I've ever received!
- Camvu Pham, student @ U of M
If I'd known about @Kibin in college, I would have gotten much more sleep
- Jen Soust, alumni @ UCLA