Using the Broad Cost Leader strategy maintains a presence in all segments of the market. The company will gain a competitive advantage by keeping R&D, production and material costs to a minimum, enabling the company to compete on the basis of price, which will be below average. Automation levels will be increased to improve margins and to offset second shift/overtime costs. Low-priced products for the industry: Our brands offer solid value. Our stakeholders are bondholders, customers, stockholders and management. Research & Development: We will keep our existing product line, maintain a presence in every segment, and work to keep our products up to date in each segment despite high automation levels. Marketing: Our company will spend modestly on promoting and selling products in our industry. Our prices will be lower than average. After we establish our cost leadership position, we will revisit our situation to explore options to improve awareness and accessibility. We will significantly increase automation levels on all products. However, because automation sets limits upon our ability to reposition products with R&D, we automate more in the slower moving Traditional and Low End segments than in the fast moving High End, Performance, and Size segments. We will prefer second shift/overtime to capacity expansions. We will Finance our investments primarily through long-term bond issues, supplementing with stock offerings on an as needed basis. When our cash position allows, we will establish a dividend policy and begin to retire stock. We are not adverse to leverage, and expect to keep assets/equity between 2.0 and 3.0.

Accounts Payable 8.2%

Current Debt 0%

Long Term Debt 43.7%

Common Stock 19.2%

Retained Earnings 28.9%

Plant Improvements

Total Investments 0.0

Sales of Plant &Equipment (12,090)

Common Stock

Shares Outstanding 2,000

Price per share $34.25

Earnings per share ($1.01)

Max Stock Issue $13,700

Issue Stock $ ?

Max Stock retire $3425

Retire stock $?

Dividend per share $?

Current Debt

Interest Rate 9.9%

Due this Year $0.0

Borrow $

Cash Position

December 21,2021 $3434

December 31,2022 $1621

Long Term Debt

Retire Long Term Debt $?

Issue Long Term Debt $?

Long Term Interest Rate 11.3%

Maximum Issue this Year $18,994

A/R Lag Days (30)

A/P Lag days (30)

Outstanding Bonds

Series Number	Face Amount	Current Yield	2021 Close
11.0S2023	$ 6,950	11.1%	$ 99.49
12.5S2025	$ 13,900	12.0%	$ 103.70
14.0S2027	$ 20,850	12.6%	$ 111.32