Question
Repeat the analysis performed in the previous question, but now assume that Hat-field is able to improve the following inputs: (1) Reduce operating costs (excluding
Repeat the analysis performed in the previous question, but now assume that Hat-field is able to improve the following inputs: (1) Reduce operating costs (excluding depreciation) to sales to 89.4% at a cost of $40 million. (2) Reduce inventories/sales to 14% at a cost of $10 million. (3) Reduce net fixed assets/sales to 38% at a cost of $20 million. This is the Improve scenario. (1) Should Hatfield implement the improvement plan? How much value would it add to the company? (2) How much can Hatfield pay as a special dividend in the Improve scena
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