| Have no impact on the Net Cash from Operations as depreciation appears in both Cash Flow and the Income Statement. | Baldwin Corporation is considering adding capacity to their Bead product, currently automated to 7.0. Assume: - They will use the new capacity next year to make and sell 200 additional units (000). - Each unit of capacity will cost $34.00. - Bead's price will be unchanged at $34.00. - Material costs will remain $13.04 next year. - Labor costs will remain $5.34 on first shift, and $7.91 on second shift. - Bond interest will remain 14.3% next year. - Depreciation will be straight line over 15 years. - SG&A costs can be ignored because they would be the same with or without the new capacity. Which of the following tactics will yield the highest ROI in their first year of production? | | Select: 1 | | Buy 100 units of capacity. Finance the $3,400 purchase entirely with a stock issue. | | Buy 200 units of capacity. Finance the $6,800 purchase entirely with a stock issue. | | Buy 100 units of capacity. Finance the $3,400 purchase entirely with a new bond. | | Buy 200 units of capacity. Finance the $6,800 purchase entirely with a new bond. | n the Month of March, Chester received orders of 185 units at a price of $15.00 for their product Cedar, and in April receives an order for 46 units of their product Cedar at $15.00. Chester uses the accrual method of accounting and offers 30 day credit terms. Chester delivers 0 units in March, 185 units in April and 46 units in May. They received payment for 185 units in April, and payment for 46 units in May. How much revenue is recognized on the March income statement from this order? How much in the April Income statement? (Answer in thousands) | | Select: 1 | | $2,775 , $694 | | $1,156 , $1,156 | | 0, $2,775 | | $3,469 , 0 | Currently Digby is paying a dividend of $1.58 (per share). If this dividend stayed the same, but the stock price rose by 10% what would be the dividend yield? | | Select: 1 | | Assume Digby Corp. is downsizing the size of their workforce by 10% (to the nearest person) next year from various strategic initiatives. Digbyis planning to conduct exit interviews to learn more about how they can improve in processes and increase productivity. The exit interviews are estimated to cost $100 per employee in additional to normal separation costs of $5000. How much will the company pay in separation costs if these exit interviews are implemented next year? | | Select: 1 | | $132,720 | | $2,900,880 | | $322,320 | | $1,194,480 | Chester's balance sheet has $98,391,000 in equity. Further, the company is expecting net income of 4,000,000 next year, and also expecting to pay $5,000,000 in dividends. If there is no new stock issued what will be Chester's book value? | All else constant, what would Chesters SG&A/Sales ratio be if the company had spent an additional $1,500,000 for Cids promotional budget and $750,000 for Cids sales budget? | | Select: 1 | | 8.5% | | 9.8% | | 7.3% | | 10.2% | Your Competitive Intelligence team reports that a wave of product liability lawsuits is likely to cause Chester to pull the product Cute entirely off the market this year. Assume Chester scraps all capacity and inventory this round, completely writing off those assets and escrowing the proceeds to a settlement fund, and assume these lawsuits will have no effect on any other products of Chester or other companies. Without Chester's product Cute how much can the industry currently produce in the Core segment? Consider only products primarily in the Core segment last year. Ignore current inventories. Figures in thousands (000). | | Select: 1 | | 9,460 | | 8,482 | | 4,949 | | 9,898 | | 8,164 | | 7,186 | | 3,673 | |
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| | Select: 1 | | $107,391,000 | | $97,391,000 | | $41,113,000 | $51,113,000 | |
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