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I was reviewing some industry sales numbers and became interested in Bam. Although Bam is sold in other segments, it is specifically designed for the
I was reviewing some industry sales numbers and became interested in Bam. Although Bam is sold in other segments, it is specifically designed for the Low End segment. l'd like to forecast the demand for Bam. To keep this simple, let's assume that all policies (i.e., R\&D, Marketing, and Production) for all competitors will remain constant and that all 2406 of units of Bam are sold in the Low End segment. If overall competition also remains constant, what will be the demand next year for Bam (in 000's)? As always, I appreciate your time and support. Michelle Michelle Cho Board Member, Strategy | Andrews Corporation 3782 units 2406 units 2752 units 5504 units From my industry research on Chester, l've learned that senior management intends to fully fund a new technology purchase by issuing 75,000 shares of stock as well as a new bond issue at the beginning of next year. My forecast indicates that this will increase Chester's leverage (assets/equity) to 2.12 . I'm now examining the effects that this investment plan will have on Chester. If we assume that the stock is issued at yesterday's stock price of $40.82, which of the following conclusions are correct? l'd estimate that a third of these are right. Ronald Ronald Jefferson Board Member, Accounting \& Finance | Andrews Corporation Choose all responses that apply. Long term debt will increase from $48,250,000 to $51,311,500 Total Assets will rise to $174,809,900. The Chester Working Capital will be unchanged at $17,245,000. Total investment for Chester will be $6,490,380. The Chester bond issue will be $3,428,880. Chester will issue stock totaling $3,061,500
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