It is January 2nd and senior management of Chester meets to determine their investment plan for the year. They decide to fully fund a plant and equipment purchase by issuing 75,000 shares of stock plus a new bond issue. Assume the stock can be issued at yesterdays stock price ($44.03) and leverage changes to 2.7. Which of the following statements are true? Select all that apply. Select: 3 The total investment for Chester will be $220,753,221 Total Assets will rise to $232,519,831 Total liabilities will be $128,030,265 Equity will be $89,420,706 Working capital will remain the same at $16,689,912 Chester will issue stock totaling $3,302,250 Chester's turnover rate for this year is 6.23%. This rate is projected to remain the same next year and no further downsizing will occur from automating. Chester plans to spend an additional $500 beyond the extra amount above the $1000 recruiting base it spent this year. The goal of this additional investment is to improve the quality of applicants. What would the total recruiting cost be for Chester next year? Select: 1 $196,497 $214,360 $178,633 $232,223 Next year Baldwin plans to include an additional performance bonus of 0.25% in its compensation plan. This incentive will be provided in addition to the annual raise, if productivity goals are reached. Assuming the goals are reached, how much will Baldwin pay its employees per hour? Select: 1 $28.15 $31.04 $28.22 $29.63 Suppose the Chester company shifts focus to only competing in the Thrift and Nano segments, while competing on price by reducing costs and passing the savings to the customers, what strategy would they be implementing? Select: 1 Broad differentiation Niche differentiation Broad cost leader Niche cost leader Andrews Corp. ended the year carrying $68,754,000 worth of inventory. Had they sold their entire inventory at their current prices, how many more dollars of contribution margin would it have brought to Andrews Corp.? Select: 1 $68,754,000 $147,889,830 $47,582,000 $112,893,000 The statement of cash flows for Baldwin Company shows what happens in the Cash account during the year. It can be seen as a summary of the sources and uses of cash (sources of cash are added, uses of cash are subtracted). Please answer which of the following is true if Baldwins accounts payable goes down: Select: 1 It is a use of cash, and will be shown in the operating section as a subtraction. It is a source of cash, and will be shown in the operating section as an addition. It is a use of cash, and will be shown in the financing section as a subtraction. It is a source of cash and will be shown in the financing section as an addition. This year Chester achieved an ROE of 4.3%. Suppose management takes measures that decrease Asset turnover (Sales/Total Assets) next year. Assuming Sales, Profits, and financial leverage remain the same, what effect would you expect this action to have on Chester's ROE? Select: 1 Chester ROE will remain the same Chester ROE will increase Chester ROE will decrease On the income statement, which of the following would be classified as a variable cost? Select: 1 Inventory Carry Expense Promotion Expense R&D Expense Depreciation Expense Use this as a reference: http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1134807&simid=C59559&round=6&Report=CapCourier|AnnReport