Please i need help with this WACC problems. Please see attached documents for instructions .

Selected Financial Statistics ROS Asset Turnover ROA Leverage (Assets/Equity) ROE Emergency Loan Sales EBIT Profits Cumulative Profit SG&A / Sales Contrib. Margin % Andrews -1.4% 1.06 -1.5% Baldwin 2.8% 1.68 4.7% Chester 10.0% 1.71 17.1% Digby 9.6% 1.54 14.8% Erie 9.3% 1.14 10.6% Ferris 6.5% 1.41 9.2% 1.5 1.7 1.5 2.0 1.9 2.1 -2.2% $0 $37,217,889 $216,850 ($512,516) $4,531,792 23.8% 30.9% 7.8% $0 $55,629,684 $3,542,990 $1,560,113 $6,196,016 14.8% 24.9% 25.6% $0 $45,052,296 $7,799,299 $4,509,280 $11,250,581 9.9% 30.6% 28.9% $0 $78,965,288 $14,006,976 $7,575,755 $14,032,008 9.0% 29.9% 20.7% $0 $49,530,800 $9,258,256 $4,626,002 $9,413,080 7.7% 30.6% 19.6% $0 $56,315,040 $7,620,132 $3,683,873 $10,370,095 11.1% 27.3% FOUNDATION FAST TRACK Page 1 Top Round: 2 Stocks & Bonds F88911 December 31 , 2019 Stock Market Summary Company Andrews Baldwin Chester Digby Erie Ferris Close Change Shares $10.62 $12.78 $20.59 $26.99 $18.74 $20.21 ($3.88) ($0.97) $3.80 $9.71 $4.73 $2.40 2,593,855 2,288,243 2,265,271 2,118,722 2,197,159 2,073,409 MarketCap Book Value ($M) $28 $8.85 $29 $8.76 $47 $7.77 $57 $12.38 $41 $10.19 $42 $9.09 EPS Dividend Yield P/E ($0.20) $0.68 $1.99 $3.58 $2.11 $1.78 $0.00 $0.00 $0.75 $0.00 $0.00 $0.00 0.0% 0.0% 3.6% 0.0% 0.0% 0.0% -54.0 18.7 10.3 7.5 8.9 11.4 Bond Market Summary Company Series# Face Yield Close$ S&P 12.0S2021 13.0S2023 9.2S2029 $1,733,333 $2,600,000 $4,258,000 11.5% 11.7% 9.4% 104.19 110.87 97.50 A A A 12.0S2021 13.0S2023 10.0S2028 $1,733,333 $2,600,000 $2,000,000 11.6% 11.9% 10.1% 103.29 109.17 99.43 BBB BBB BBB Andrews Baldwin 10.9S2029 $2,000,000 10.4% 104.89 BBB 12.0S2021 13.0S2023 10.0S2028 $1,733,333 $2,600,000 $500,000 11.5% 11.7% 9.7% 104.37 111.22 102.94 A A A 12.0S2021 13.0S2023 10.0S2028 10.7S2029 $1,733,333 $2,600,000 $2,287,212 $4,151,146 11.8% 12.3% 10.6% 11.0% 101.54 105.88 93.93 97.65 B B B B 12.0S2021 13.0S2023 10.0S2028 10.8S2029 $1,733,333 $2,600,000 $2,361,878 $4,713,522 11.8% 12.3% 10.6% 11.0% 101.54 105.88 93.93 98.24 B B B B 12.0S2021 13.0S2023 10.0S2028 10.9S2029 $1,733,333 $2,600,000 $420,545 $2,546,038 11.9% 12.5% 10.9% 11.4% 100.68 104.29 91.34 95.98 CCC CCC CCC CCC Chester Digby Erie Ferris Next Year's Prime Rate 7.00% FOUNDATION FAST TRACK Page 2 Top Financial Summary Cash Flow Statement Survey F88911 Round: 2 December 31, 2019 Andrews Baldwin Chester Digby Erie Ferris ($513) $1,560 $4,509 $7,576 $4,626 $3,684 $1,920 $0 $1,904 $0 $1,364 $0 $2,212 $0 $1,742 $0 $1,333 $0 $743 ($9,391) $40 ($7,201) $640 $0 $1,350 $5,454 ($131) $0 $251 $5,994 $1,474 $0 ($2,109) $9,153 $149 $0 ($477) $6,040 $914 ($3,366) ($665) $1,900 ($12,300) ($9,660) ($5,400) ($12,280) ($11,188) ($9,300) $0 $6,265 $0 $4,258 $0 $0 $0 $0 $0 $1,500 $0 $2,000 $0 ($5,000) $500 $0 ($1,699) $3,000 ($50) $0 $0 ($500) $500 $0 $0 $1,418 $0 $4,151 $0 ($3,679) $8,759 $0 $0 $2,048 $0 $4,714 $0 ($3,679) $6,632 $0 $0 $1,307 $0 $2,546 $0 ($3,679) $9,359 $0 Net cash from financing activities $10,523 ($1,000) $1,251 $10,650 $9,714 $9,533 Net change in cash position ($8,977) ($5,206) $1,845 $7,523 $4,566 $2,133 Andrews $1,643 $3,059 $9,391 $14,093 Baldwin $8,020 $4,572 $0 $12,592 Chester $9,363 $3,703 $0 $13,066 Digby $19,529 $6,490 $0 $26,020 Erie $14,779 $4,071 $0 $18,850 Ferris $12,946 $4,629 $3,366 $20,941 Cash flows from operating activities Net Income (Loss) Adjustment for non-cash items: Depreciation Extraordinary gains/losses/writeoffs Changes in current assets and liabilities: Accounts payable Inventory Accounts receivable Net cash from operations Cash flows from investing activities Plant improvements (net) Cash flows from financing activities Dividends paid Sales of common stock Purchase of common stock Cash from long term debt issued Early retirement of long term debt Retirement of current debt Cash from current debt borrowing Cash from emergency loan Balance Sheet Survey Cash Accounts Receivable Inventory Total Current Assets Plant and equipment Accumulated Depreciation Total Fixed Assets $28,800 ($7,680) $21,120 $28,560 ($7,964) $20,596 $20,466 ($7,169) $13,297 $33,180 ($8,032) $25,148 $32,583 ($7,969) $24,614 $26,300 ($7,267) $19,033 Total Assets $35,213 $33,188 $26,363 $51,168 $43,464 $39,975 Accounts Payable Current Debt Long Term Debt Total Liabilities $2,792 $867 $8,591 $12,250 $3,432 $1,367 $8,333 $13,132 $2,570 $1,367 $4,833 $8,770 $4,550 $9,626 $10,772 $24,948 $2,167 $7,498 $11,409 $21,074 $3,607 $10,225 $7,300 $21,132 Common Stock Retained Earnings Total Equity $10,393 $12,569 $22,962 $5,823 $14,233 $20,056 $6,667 $10,926 $17,593 $4,151 $22,069 $26,220 $4,941 $17,450 $22,390 $3,630 $15,212 $18,843 Total Liabilities & Owners' Equity $35,213 $33,188 $26,363 $51,168 $43,464 $39,975 Andrews $37,218 $25,706 $1,920 $8,849 $526 $217 $1,005 ($276) $0 ($513) Baldwin $55,630 $41,760 $1,904 $8,247 $175 $3,543 $1,094 $857 $32 $1,560 Chester $45,052 $31,270 $1,364 $4,468 $151 $7,799 $720 $2,478 $92 $4,509 Digby $78,965 $55,359 $2,212 $7,109 $278 $14,007 $2,114 $4,163 $155 $7,576 Erie $49,531 $34,384 $1,742 $3,808 $338 $9,258 $1,996 $2,542 $94 $4,626 Ferris $56,315 $40,921 $1,333 $6,248 $193 $7,620 $1,837 $2,024 $75 $3,684 Income Statement Survey Sales Variable Costs (Labor, Material, Carry) Depreciation SGA (R&D, Promo, Sales, Admin) Other (Fees, Writeoffs, TQM, Bonuses) EBIT Interest (Short term, Long term) Taxes Profit Sharing Net Profit FOUNDATION FAST TRACK Page 3 Top Production Analysis F88911 Round: 2 December 31, 2019 Production Information Primary Segme nt Units Sold Able Low 804 AElite High 202 Baker Low 1,634 Name B_Sens 0 Unit Inven Revisio Age tory n Date Dec.31 4/11/20 19 4/26/20 0 19 404 6/29/20 20 4/6/201 0 9 0 Cake Low 1,287 0 Daze Low 1,683 0 Dabble High 446 Eat Low 1,690 4/27/20 19 4/20/20 19 5/9/201 0 9 0 1/15/20 19 Size Coord MTBF Pfmn Coord 5.1 14000 6.4 13.6 $35.00 $11.29 $10.85 30% 53% 3.0 1,150 151% 0.7 17000 8.1 11.9 $45.00 $15.73 $12.94 35% 100% 3.0 450 134% 3.4 20000 6.8 13.2 $34.05 $13.92 $11.03 25% 57% 5.3 1,050 156% 0.7 20000 7.5 12.4 $40.00 $0.00 0% 0% 0.0 0 0% 2.0 17000 7.1 13.8 $35.00 $12.77 $10.96 31% 55% 3.0 1,137 154% 2.1 19500 6.6 13.6 $35.00 $13.15 $11.63 28% 100% 3.7 1,100 198% 0.6 22000 8.0 12.4 $45.00 $16.61 $11.34 37% 100% 3.2 600 127% 3.3 16500 6.0 14.4 $29.30 $10.80 31% 100% 5.4 947 199% Price Material Cost $0.00 Labor Cost 2nd Auto Shift & mation Capacit Contr. OverNext y Next Marg. time Round Round $8.96 Plant Utiliz. East Fast High Feast 0 0 1,463 122 0 3/14/20 20 10/10/2 019 5/20/20 0 20 0.0 0 0.0 1.7 22000 8.5 0.0 0 0.0 0.0 $0.00 0% 0% 4.0 293 0% 11.6 $38.50 $17.96 $10.78 27% 88% 3.5 1,000 186% 0% 0% 3.0 350 0% 0.0 $0.00 $0.00 $0.00 $0.00 $0.00 FOUNDATION FAST TRACK Page 4 Top Low Tech Market Segment Analysis F88911 Round: 2 December 31, 2019 Low Tech Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry 6,098 6,098 66.2% Next Year's Segment Growth Rate 10.0% Low Tech Customer Buying Criteria 1. 2. 3. 4. Expectations $15.00 - 35.00 Ideal Age = 3.0 MTBF 14000-20000 Pfmn 5.8 Size 14.2 Price Age Reliability Ideal Position Importance 41% 29% 21% 9% Perceptual Map for Low Tech Segment Top Products in Low Tech Segment Market Name Share Eat 24% Baker 21% Daze 20% Cake 14% Units Sold to Seg 1,478 1,299 1,229 875 Revision Stock Date Out 1/15/2019 YES 6/29/2020 YES 4/20/2019 YES 4/27/2019 YES Pfmn Coord 6.0 6.8 6.6 7.1 Size Coord 14.4 13.2 13.6 13.8 List Price $29.30 $34.05 $35.00 $35.00 MTBF 16500 20000 19500 17000 Age Dec.31 3.26 3.39 2.07 2.01 Promo Budget $875 $2,000 $1,450 $1,500 Cust. Awareness 54% 97% 83% 85% Cust. Sales AccessBudget ibility $875 28% $2,000 57% $1,450 48% $1,700 48% Dec. Cust. Survey 18 28 20 13 Able Fast 10% 10% 625 592 4/11/2019 10/10/2019 6.4 8.5 13.6 11.6 $35.00 $38.50 14000 22000 5.10 1.68 $1,500 $1,500 85% 85% $2,000 $1,275 54% 28% FOUNDATION FAST TRACK 5 1 Page 5 Top High Tech Market Segment Analysis F88911 Round: 2 December 31, 2019 High Tech Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry 3,110 3,110 33.8% Next Year's Segment Growth Rate 20.0% High Tech Customer Buying Criteria 1. 2. 3. 4. Expectations Pfmn 8.8 Size 11.2 Ideal Age = 0.0 $25.00 - 45.00 MTBF 17000-23000 Ideal Position Age Price Reliability Importance 33% 29% 25% 13% Perceptual Map for High Tech Segment Top Products in High Tech Segment Market Name Share Fast 28% Daze 15% Dabbl 14% e Cake 13% Baker 11% Eat 7% AElite 6% Able 6% Units Sold to Seg 871 454 Revision Stock Date Out 10/10/2019 4/20/2019 YES Pfmn Size Coord Coord 8.5 11.6 6.6 13.6 List Price $38.50 $35.00 Age MTBF Dec.31 22000 1.68 19500 2.07 Promo Budget $1,500 $1,450 Cust. Awareness 85% 83% Cust. Sales AccessBudget ibility $1,275 38% $1,450 53% Dec. Cust. Survey 30 12 446 5/9/2019 YES 8.0 12.4 $45.00 22000 0.64 $750 39% $750 53% 21 412 334 212 202 179 4/27/2019 6/29/2020 1/15/2019 4/26/2019 4/11/2019 YES YES YES YES 7.1 6.8 6.0 8.1 6.4 13.8 13.2 14.4 11.9 13.6 $35.00 $34.05 $29.30 $45.00 $35.00 17000 20000 16500 17000 14000 2.01 3.39 3.26 0.68 5.10 $1,500 $2,000 $875 $1,500 $1,500 85% 97% 54% 61% 85% $1,700 $2,000 $875 $2,000 $2,000 49% 59% 28% 61% 61% 10 11 4 23 2 FOUNDATION FAST TRACK Page 6 Top Market Share Report Actual Market Share in Units Potential Market Share in Units Low High Total 6,098 3,110 9,209 66.2% 33.8% 100.0% Able AElite Total 10.3% 10.3% 5.8% 6.5% 12.3% 8.7% 2.2% 10.9% Baker Total 21.3% 21.3% 10.8% 10.8% 17.7% 17.7% Cake Total 14.4% 14.4% 13.2% 13.2% 14.0% 14.0% Daze Dabble Total 20.1% 20.1% 14.6% 14.3% 28.9% 18.3% 4.8% 23.1% Eat Total 24.2% 24.2% 6.8% 6.8% 18.4% 18.4% Fast Total 9.7% 9.7% 28.0% 28.0% 15.9% 15.9% Industry Unit Sales % of Market Round: 2 December 31, 2019 F88911 Low High Total 6,098 3,110 9,209 66.2% 33.8% 100.0% Able AElite Total 9.1% 9.1% 5.0% 16.5% 21.5% 7.7% 5.6% 13.3% Baker Total 29.8% 29.8% 14.8% 14.8% 24.8% 24.8% Cake Total 13.9% 13.9% 11.5% 11.5% 13.1% 13.1% Daze Dabble Total 19.5% 19.5% 13.4% 13.3% 26.8% 17.4% 4.5% 21.9% Eat Total 19.8% 19.8% 5.1% 5.1% 14.8% 14.8% Fast Total 7.8% 7.8% 20.3% 20.3% 12.1% 12.1% Units Demanded % of Market FOUNDATION FAST TRACK Page 7 Top Perceptual Map F88911 Round: 2 December 31, 2019 Perceptual Map for All Segments Andrews Name Able AElite Pfmn 6.4 8.1 Size 13.6 11.9 Baldwin Revised Name 4/11/2019 Baker 4/26/2019 B_Sens Pfmn 6.8 7.5 Digby Name Daze Dabble Pfmn 6.6 8.0 Size 13.6 12.4 Size 13.2 12.4 Chester Revised Name 6/29/2020 Cake 4/6/2019 Pfmn 7.1 Revised Name 1/15/2019 Fast Pfmn 8.5 Erie Revised Name 4/20/2019 Eat 5/9/2019 Pfmn 6.0 Size 14.4 Size 13.8 Revised 4/27/2019 Ferris Size 11.6 Revised 10/10/2019 FOUNDATION FAST TRACK Page 8 Top HR/TQM Report F88911 Round: 2 December 31, 2019 HUMAN RESOURCES SUMMARY Andrews Baldwin Chester Digby Erie Ferris Needed Complement 290 330 255 419 257 300 Complement 232 330 240 419 257 300 1st Shift Complement 183 210 164 210 129 159 2nd Shift Complement 49 120 76 210 129 141 Overtime% 31.6% 0.0% 9.3% 0.0% 0.0% 0.0% Turnover Rate 10.2% 7.0% 9.4% 8.5% 8.7% 7.0% 64 103 23 176 30 81 0 0 10 0 0 0 $4,000 $5,000 $75 $2,000 $2,200 $3,500 New Employees Separated Employees Recruiting Spend Training Hours 80 80 40 40 35 80 100.0% 104.5% 100.0% 100.2% 100.0% 102.9% $318 $619 $24 $528 $95 $365 $0 $0 $52 $0 $0 $0 Training Cost $371 $528 $192 $335 $180 $480 Total HR Admin Cost $689 $1,147 $268 $864 $275 $845 Productivity Index Recruiting Cost Separation Cost Strike Days TQM SUMMARY Andrews Baldwin Chester Digby Erie Ferris Process Mgt Budgets Last Year CPI Systems Vendor/JIT Quality Initiative Training Channel Support Systems Concurrent Engineering UNEP Green Programs $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 TQM Budgets Last Year Benchmarking Quality Function Deployment Effort CCE/6 Sigma Training GEMI TQEM Sustainability Initiatives Total Expenditures $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Cumulative Impacts Material Cost Reduction Labor Cost Reduction Reduction R&D Cycle Time Reduction Admin Costs Demand Increase FOUNDATION FAST TRACK Page 9 WACC Assignment Instructions - WACC, EVA & MVA Assignment Part I: Calculate Team Chester's company's Weighted Average Cost of Capital in Practice Year 2. In calculating cost of equity, use the CAPM. In the CAPM, use 6.0% for the risk free rate, 5.0% for the market risk premium, and assume your company is rated average in terms of financial risk, in the prime of its life cycle. Select an appropriate beta (hint: what beta reflects average risk). Part II: Calculate team Chester company's Economic Value-Added (EVA) for Practice Year 2. Part III: Calculate team Chester company's Market Value-Added (MVA) for Practice Year 2. Part IV: Suppose that the beta value you used in the previous parts is really an unlevered beta. Calculate the beta value that is consistent with your actual leverage. The debt beta should be assumed to be zero. Some WACC Assignment Information! Here's some information regarding the WACC Assignment: EVA = NOPAT - Dollar Cost of Capital NOPAT = (EBIT(1-T)) MVA = Market value of equity - Book value of equity