8/8/2019 Capstone Fact Pack 1

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Financial Analysis

1. Segment Strategic Overviews

2. Marketing Analysis

3. Production Analysis4. Financial Analysis

5. Yr 1 Plans and Business Decisions

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Corporation Rating

Andrew BBB

Baldwin BBB

Chester BBB

Digby BBB

Erie BBB

Ferris BBB

All of our stock prices started at $34.25 in the first year.

Financial analysis:

Our bond rating remained at a BBB rating. We are expectingour corporate bond rating to increase each round andultimately receive a AAA rating within the next few rounds

Sto ck Price

Bo nd Ra t ing

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Financial analysis:

Financial Decisi o ns f o r Yr 1

Issuance of $.50 per share dividend.

$1,430,000 plant sale.

No emergency loans.

Reduce accounts payable lag to 15 days.

Increase accounts receivable lag to 45 days.

8/8/2019 Capstone Fact Pack 1

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DigbyDecisi o ns F o r Year 1

Traditional

R&D:

-New coordinates are at 6.3 pfmn and 13.5 size for Daze.-Cost: $744,000

Marke t ing:-Increase promo and sales budgets to $2,000 to improve awarenessand accessibility.

Pr o duc t io n:-We are not making any production changes to Daze.

8/8/2019 Capstone Fact Pack 1

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Low-EndR & D:

- Keep coordinates at 3.0 pfmn and 17.0 size for Dell.Marke t ing:

- Keep price steady at $24.00.- Increase promo and sales budgets to $2,000 to improve

awareness and accessibility.Pr o duc t io n:

-We are not making any production changes to Dell.

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H igh End

R&D: New coordinates are at 9.2 pfmn and 11.0 size for Dixie; keeping up

with drift and staying in sweet spot Cost: Dixie $890,000

Marke t ing: Keep promo and sales budget at $1,800 each. Increase price to $39.50

Pr o duc t io n: We are making no changes to Dixie.

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Perf o rmance

R&D: New coordinates are at 10.6 pfmn and 15.0 size for Dot; keeping up

with drift and staying in sweet spot Cost: $760,000

Marke t ing: Increase price to $34.50 Increase promo budget to gain 100% awareness as well as raise sales

budget.

Pr o duc t io n: We are not making any production changes for Dot.

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S ize

R&D: New coordinates are at 4.5 pfmn and 9.8 size for Dune, and 6.3 pfmn

and 13.5 size for Daze Cost: Daze-$744,000 Dune-$720,000

Marke t ing: Raise promo and sales budget to improve awareness and accessibility.

Pr o duc t io n: We are not making any production changes for Daze. We are not making any production changes for Dune.