Orbit Chemical Company Orbit Chemical Co., located in Sarnia, Ontario, manufactures basic chemicals such as ethylene, vinyl chloride, and propylene. Although it is approximately 10 percent the size of its major competitors such as Du Pont, Dow Chemical, Monsanto, and Praxair, it still maintains a competitive position in the marketplace. Robert Osbome, the CEO, had aggressively brought new products to the marketplace. These activities necessitated heavy new investment in plant and equipment. At the same time, Osborne thought it necessary to reduce the firm's amount of debt financing to present a better picture to the investment community Net income had been increasing at a rate of five to 10 per year in the past few years and was expected to do so in the future. However, Osbome was upset that the stock was only trading at a P/E ratio of 7 times 20XX earnings per share. As Osborne was beginning the f process of financial planning for 20XY, he received an E-mail message from Dan Morgan, the firm's vice president