Capsim Final

1494 Words May 13th, 2015 6 Pages

This year Andrews achieved an ROE of 6.0%. Suppose management takes measures that increase Asset turnover (Sales/Total Assets) next year. Assuming Sales, Profits, and financial leverage remain the same, what effect would you expect this action to have on Andrews's ROE?
Select: 1

Andrews ROE will increase.

Andrews ROE will remain the same.

Andrews ROE will decrease.

On the income statement, which of the following would be classified as a variable cost?
Select: 1

Depreciation Expense

Direct Material Expense

Promotion Expense

R&D Expense

It is January 2nd and senior management of Digby meets to determine their investment plan for the year. They decide to fully fund a plant and equipment purchase by issuing
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Select: 1





Assuming no brokerage fees, calculate the amount of cash needed to retire Baldwin's 11.2S2023 bond early.
Select: 1




What would Chester Corporation's market capitalization be if the current price rose 10%?
Select: 1

$82.7 million

$75.2 million

$85.1 million

$75.5 million

Which description best fits Chester? For clarity:

- A differentiator competes through good designs, high awareness, and easy accessibility.
- A cost leader competes on price by reducing costs and passing the savings to customers.
- A broad player competes in all parts of the market.
- A niche player competes in selected parts of the market.

Which of these four statements best describes this competitor?
Select: 1

Chester is a broad differentiator

Chester is a niche differentiator

Chester is a niche cost leader

Chester is a broad cost leader

The Chester company will continue to train their existing workforce at their current level to help reduce turnover and improve productivity next year. Employee training costs $20 per hour. How much would their training costs per employee be to the nearest dollar?
Select: 1





The Baldwin company will sell 100 units (x1000) of capacity from their Bam product line. Each unit of capacity is worth $6 plus $4 per automation rating. The Baldwin company will sell the capacity for 35% off. How much do they receive when the capacity is sold?
Select: 1


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