2. The Baldwin company wants to decrease its plant utilization for Bid by 15%. H

Question

2. The Baldwin company wants to decrease its plant utilization for Bid by 15%. How many units would need to be produced next year to meet this production goal? Ignore impact of accounts payable on plant utilization.

Select: 1 1,584 1,704 1,245 1,464

3. Chester's balance sheet has $82,933,000 in equity. Further, the company is expecting net income of 3,000,000 next year, and also expecting to issue $4,000,000 in new stock. If there are no dividends paid what will beChester's book value? Select: 1 $81,933,000 $42,632,000 $34,632,000 $89,933,000

Your Competitive Intelligence team reports that a wave of product liability lawsuits is likely to cause Chester to pull the product Cute entirely off the market this year. Assume Chester scraps all capacity and inventory this round, completely writing off those assets and escrowing the proceeds to a settlement fund, and assume these lawsuits will have no effect on any other products of Chester or other companies. Without Chester's product Cute how much can the industry currently produce in the Core segment? Consider only products primarily in the Core segment last year. Ignore current inventories. Figures in thousands (000).

Select: 1

Explanation / Answer

The required data to solve   2 and 4 are missing. So I am solving
3)Chester book value of equity= Beg equity+Net income-dividends paid+new stock
=82933000+3000000-0+4000000
=89933000
It is option D

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