MPX x.100 Quarter 1

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Gazette

The Official Publication of the MPX Federation for Quarter 1


X.100

________________________________________________________________________

Industry Monitor 6. If you wish to go for an Issue, indicate the number


Wafer Material Prices up by  Cu.1 of Equity Shares in ADF. This entry must be made
in the quarter in which you want to raise equity.
Labor Costs down by  Cu.1
Corporate Income Tax 30 % Launch of BONE
Currently no manufacturer is producing BONEs.
Current Price Bands. Prices outside this band However there seems to be considerable interest in
will receive no sales. entering that market. The price levels indicated in the
Limits PALM MILLI STICK BONE table above are fairly realistic expectations of the
electronics industry. However, to enter this market, firms
Upper 550 500 350 500
need to buttress their technical support divisions which
Lower 400 350 250 300
involve an additional production overheads of Cu.
Paul Sakman, Global Partner, Pantalun Consulting. 200,000 per quarter and an increase of Cu 3 per unit in
Sakman is an acknowledged authority in the digital the cost of overall manpower for first three products and
home electronics industry. He is the adviser to twice for Bone. This additional cost is mandatory and all
several Venture Capital firms in the Bay area. firms opting to enter this market will be forced to set up
these facilities in whichever quarter they launch Bones.
Paul Sakmans’ is willing to buy equity shares of your
company. He has put some conditions for subscribing Export Demand for PALM, MILI & STICK
to your equity issue:
1. He will buy at 1-10% discount to the market Export demand is expected in above product categories
price estimated considering your Quarter 1 from Q2 and the size of demand could be between 5000
performance. In case you offer him shares later units to 15000 units per team per quarter. This demand
say in Quarter 3, the price will factor in Quarter will be in addition to the domestic demand. You may
3 performance. like to do resource planning to meet the export demand.
2. He will not buy shares in case their tendering Brand Building in the MPX Industry
price is lower than the face value (Cu.1),
irrespective of your offer price. MPXs are lifestyle products and depend to a large extent
3. You can exercise this option only in the first on branding and positioning in the eyes of the customers.
three quarters. With a view to enable the MPX industry take decisions
4. If subscribed, the Issue proceeds would be on brand promotion, the Advertising Council of
released to you at the beginning of the quarter of Chanakya has the following “rack” rates that are
issue. An Issue once made cannot be cancelled indicative of the expenses. The more difficult question to
or reversed. The share price expected by you answer is the effectiveness of these initiatives and that is
along with the number of shares, represents your a different question that even advertising pundit find
money requirement. Paul Sakman would difficult to answer. These costs are over and above the
consider the riskiness of your business, past and Fixed Advertisements and branding costs (Cu.200,000)
future performance, and equity size to evaluate mentioned in the Starting Conditions. The costs will be
the attractiveness of your Issue and in equally divided over the four products in Quarter 1
determining a tender price. The additional irrespective of quarter of launch/production etc.
volume of shares issued may depress your EPS
as well as Book Value per share, if the additional Brand Promotion Initiative: You can opt for MM
funds of the Issue do not translate into sufficient or BA or Both or None. One Time Cost - One
earnings for the company. Therefore timing Time Offer. ONLY AVAILABLE IN QTR 1. Cost
would be as important as the price and the Allocated equally over 4 products.
number of shares you expect to issue. Equity
Mass Media Cu. 100,000
issue risky because your issue may not go Advertisements (MM)
through if your share price dips below face Appointment of Brand Fixed Celebrity Fees
value. ambassador (BA) Cu. 200,000
5. He is not willing to take up more than 25% of the
present equity capital (in number of shares) over
the three quarter period.

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