COMP XM UPDATED Exam Questions and CORRECT Answers
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Course
COMP XM
Institution
COMP XM
COMP XM UPDATED Exam Questions
and CORRECT Answers
Segment/Perf/Size - Correct Answer- Thrift +-0.5 -0.5
Core +0.8 -0.8
Nano +0.8 -1.1
Elite +1.1 -0.8
*THE ONLY PRODUCT THAT DOES NOT MOVE, IT'S THE PRODUCT IN LOW END
SEGMENT. LEAVE THIS PRODUCT AT 3.0 AND 17.0*
*THE ONLY PRODUCT THAT DOES NOT MOVE, IT'S THE PRODUCT IN LOW END
SEGMENT. LEAVE THIS PRODUCT AT 3.0 AND 17.0*
You want to increase
performance and reduce size as much as you can without the revision date reaching July.
Prices between each round - Correct Answer- Don't change the price!
Price for each product - Correct Answer- Nano - max
Elite - max
Core - a few bucks below
Thrift - a few bucks below
Automation - Correct Answer- increase automation by 1 point each round in each product
get low end up as high as you can
What is your target leverage and how do you get there? - Correct Answer- borrow money
until you hit 2.2 and get 60 days of working capital (will have to pay dividends)
To calculate leverage, - Correct Answer- divide total assets by total equity. This number will
represent the number of dollars of assets owned per dollar invested by equity holders.
,If a company has leverage of four, that means they have $4 in debt for every $1 in equity.
sales and promo budgets (all four rounds) - Correct Answer- For all products
This year's potential market share * next year's demand is a good starting point, but then
make judgment adjustments as necessary (e.g. is my product improving, are my competitors
improving, etc.)
use 200% of plant utilization
you must calculate capacity _____ rounds ahead - Correct Answer- 2 rounds
, MTBF - Correct Answer- Set to maximum amount
Steps for getting a good finance position - Correct Answer- Goals is to get a cash position of
$5,000 in Decembers
Step 1: get as much issue stock as possible
Step 2: get as much issue long-term debt
Step 3: get whatever you need left from borrow
when to retire stock - Correct Answer- when you have a good cash position and you have
some money left over to purchase stock back from the market
when to give out dividends - Correct Answer- it's for when you have cash leftover in capital
investment to give to your
shareholder.
when to retire long-term debt - Correct Answer- it's for when you want to pay your debt early
(This usually decreases your interests expense)
Buy/Sell Capacity Strategy - Correct Answer- You want to keep 2 nd Shift Production %
between 20% and 50%
If you have less than 20%; you have to sell capacity
If you more than 50% you have to buy capacity
After you make you decisions on production, check how much capital investment you have;
If you have capital investment leftover, try to spend it in Automation or Capacity
If you are spending more than you should, try to sell capacity or not invest as much.
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