Minster Inc. is examining its dividend policy and has provided you with the following information: 1 2 3 Revenues $1,200.00 $1,400.00 $1,600.00 Net Income $35.00 $65.00 $155.00 Total Non-cash WC as % of revenues 10.00% 10.00% 10.00% Dividend Payout 0.00% 10.00% 20.00% The non-cash working capital currently is $150 million and the company has a cash balance right now of $50 million. In the most recent year, depreciation amounted to $75 million and capital expenditures were $100 million. You expect depreciation to grow 8% a year and capital expenditures to increase 8% a year, each year for the next 3 years. Assuming that the company would like to double its cash balance by the end of year 3 and do a stock buyback in year 3, estimate how much cash the company will have available for its buyback.

Cadbury has a chocolate factory in dunedin, new zealand. for easter, it makes two kinds of “easter eggs”: milk chocolate and dark chocolate. it cycles between producing milk and dark chocolate eggs. the table below provides data on these two products. demand (lbs per hour) milk: 500 dark: 200 switchover time (minutes) milk: 60 dark: 30 production rate per hour milk: 800 dark: 800 for example, it takes 30 minutes to switch production from milk to dark chocolate. demand for milk chocolate is higher (500lbs per hour versus 200 lbs per hour), but the line produces them at the same rate (when operating): 800 lbs per hour. a : suppose cadbury produces 2,334lbs milk chocolate and 1,652 lbs of dark chocolate in each cycle. what would be the maximum inventory (lbs) of milk chocolate? b : how many lbs of milk and dark chocolate should be produced with each cycle so as to satisfy demand while minimizing inventory?