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I am having trouble with the finance portion of round 1. I am looking for guidance on how much I should borrow (dollar amounts) so
I am having trouble with the finance portion of round 1. I am looking for guidance on how much I should borrow (dollar amounts) so that I can achieve a broad cost leader strategy
Finances Liabilities & Owner's Equity Plant Improvements Total Investments ($000) O Accounts Payable : 8.5 % $ 16,300 Sales of Plant & Equipment $ 0 Retained Earnings : 40.1 % - Current Debt: 27.8 % Common Stock Shares Outstanding (000) 2,000 Price Per Share on $ 11.17 Common Stock: 7.3 % Long Term Debt: 16.3 % Earnings Per Share o $ 1.12 Max Stock Issue ($000) O $ 4,468 Issue Stock ($000) $ 0 $ 0 Max Stock Retire ($000) $ 1,117 Long Term Debt Retire Long Term Debt ($000) O Issue Long Term Debt ($000) O Long Term Interest Rate Maximum Issue This Year o $ 0 Retire Stock ($000) $ 0 10.0% $ 2,480 $ 0.00 Dividend Per Share o Current Debt Interest Rate 30 A/R Lag (days) A/P Lag (days) 8.6% 30 $ 0 Due This Year Borrow ($000) $ 0 Cash Positions December 31, 2020 Outstanding Bonds Series Number o Face Amount o Current Yield 2020 Close 11.0S2022 $ 867 10.8% $ 101.74 12.082024 $ 1,733 11.3% $ 106.34 13.0S2026 $ 2,600 11.5% $ 113.07 $ 5,602 December 31, 2021 0 ($ 8,881) Finances Liabilities & Owner's Equity Plant Improvements Total Investments ($000) O Accounts Payable : 8.5 % $ 16,300 Sales of Plant & Equipment $ 0 Retained Earnings : 40.1 % - Current Debt: 27.8 % Common Stock Shares Outstanding (000) 2,000 Price Per Share on $ 11.17 Common Stock: 7.3 % Long Term Debt: 16.3 % Earnings Per Share o $ 1.12 Max Stock Issue ($000) O $ 4,468 Issue Stock ($000) $ 0 $ 0 Max Stock Retire ($000) $ 1,117 Long Term Debt Retire Long Term Debt ($000) O Issue Long Term Debt ($000) O Long Term Interest Rate Maximum Issue This Year o $ 0 Retire Stock ($000) $ 0 10.0% $ 2,480 $ 0.00 Dividend Per Share o Current Debt Interest Rate 30 A/R Lag (days) A/P Lag (days) 8.6% 30 $ 0 Due This Year Borrow ($000) $ 0 Cash Positions December 31, 2020 Outstanding Bonds Series Number o Face Amount o Current Yield 2020 Close 11.0S2022 $ 867 10.8% $ 101.74 12.082024 $ 1,733 11.3% $ 106.34 13.0S2026 $ 2,600 11.5% $ 113.07 $ 5,602 December 31, 2021 0 ($ 8,881)Step by Step Solution
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