Chester company Experiment with in practice round: -should introduce new product in one of the segments w/ R&D -order

capacity, production capacity, timing issue -issuing long-term debt, issuing or buying back stock -discontinuing a product in a segment: completely or slowly phase out have exiting plan ***penalized for huge cash balances -adjusting credit terms with A/R & A/P policies -should not try to implement strategy in the practice round b/c competitors will know your strategy -dividends are important = $2.00 -make a new product every other year Things to look at RED FLAGS -emergency loan = cash management -profitability -annual sales -contribution margins around 30%+ -change in stock price -EPS -Dividends -Bond market summary = each company starts w/ 3 loans -plant improvements = () investing/selling -a/r balance = change in terms forecasting sales= # of units in round x (1+growth rate) annual segment supply = utilization rate from round x capacity over 135% utilization rate is BAD look at potential market size problem in product or sales forecasting?!?!?!? 4 main characteristics focus on the highest importance %