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Comp XM 3 – Questions And Complete Answers
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Comp XM 3 – Questions And Complete Answers
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Comp XM 3 – Questions And Complete AnswersThe Digby's workforce complement will grow by 10% (rounded to the
nearest person) automating, what would their total recruiting cost be?
Assume Digby spends the same amount extra above the $1,000 next year.
Ignoring downsizing from recruiting base as they did last year.
✔️Ans -a) $312,000 b) $2,840,000 c) $260,000 d) $3,408,000
Company Baldwin invested $30,800,000 in plant and equipment last year.
The plant investment was funded with bonds at a face value of $19,109,969
at 12.1% interest, and equity of $11,690,031. Depreciation is 15 years
straight line. For this transaction alone which of the following statements
are true? ✔️Ans -a) Depreciation increased by $2,053,333.
b) Cash went up when the Bond was issued by $19,109,969.
c) Buying the plant had no net effect on the Cash account, because the plant
was paid for by the bond plus retained earnings.
d) Cash was pulled from retained earnings to cover the $11,690,031
difference between the plant purchase and bond issue.
e) On the Balance sheet, Plant & Equipment increased by $30,800,000.
f) Since the new plant was funded with debt and equity, on the Balance
sheet Retained Earnings decreased by $11,690,031, the difference between
the investment $30,800,000 and the bond $19,109.969.
g) Cash went down by $30,800,000 when the plant was purchased.
h) On the Balance sheet, Long Term Debt changed by $19,109,969.
Your team is struggling with the quality of discussions during team
meetings. Much of the difficulty stems from how conversation flows among
team members. Which of the following actions would be most likely to
enhance the overall quality of your team's discussions? ✔️Ans -
a) Encourage team members to build upon comments and questions that
others have already voiced.
b) Before each meeting, create a sequence that indicates when each person
should speak.
c) Organize team discussions by allowing team members with more project
experience speak first.
d) Create more flexibility by allowing team members with more to say
determine the direction of the discussions.
, This year Andrews achieved an ROE of 24.6%. Suppose management takes
measures that decrease 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? ✔️Ans
-a) Andrews ROE will increase
b) Andrews ROE will remain the same
c) Andrews ROE will decrease
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 75,000 shares of stock plus a new bond
issue. Assume the stock can be issued at yesterday's stock price ($36.97)
and leverage changes to 2.7. Which of the following statements are true?
✔️Ans -a) Working capital will remain the same at $15,570,093
b) Digby will issue stock totaling $2,772,750
c) Equity will be $84,060,609
d) Total liabilities will be $121,856,406
e) Total Assets will rise to $219,477,219
f) The total investment for Digby will be $208,689,765
Next year Baldwin plans to include an additional performance bonus of
0.25% in its compensation plan. This incentive will be provided in addition
to the annual raise, if productivity goals are reached. ASsuming the goals
are reached, how much will Baldwin pay its employees per hour?
✔️Ans -a) $28.15 b) $28.22 c) $29.63 d) $31.04
Suppose the Chester company begins to compete through good designs,
high awareness and easy accessibility for their existing products, what
strategy would they be implementing? ✔️Ans -a) Niche cost
leader b) Broad differentiation c) Broad cost leader c) Niche differentiation
There is no one more technically savvy than James Westover. Indeed, he has
built two amazing cloud-based applications and started his own
application development company, all within two years of graduating from
college. Because of his success, James caught the attention of Cheryl
Stevens, a venture capitalist who funds technology start-ups. Cheryl asked
James to send her his best idea for a new application remarking, "if it's
anything like your previous two, you can count me in." James is technical
nature of his idea. Which of the following worried about sending the idea
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