n on equity at Woodstocks West Inc. would increase 30 percent over pre expansion levels during the first three years subsequent to the implementation of an expansion business plan.
Hypothesis number five: It is hypothesized that the proposed operational expansion at Woodstocks West Inc. could not be funded from internal sources, and that an increased in external long term borrowing at a level of 50 percent over pre expansion levels would be required to fund such expansion.
Hypotheses related to subproblem number two:
Hypothesis number six: It is hypothesized that the firm's pre expansion non managerial staff is insufficient in terms of numbers to support the level of operations envisioned in the proposed expansion plan.
Hypothesis number seven: It is hypothesized that the firm's pre expansion managerial staff is sufficient in terms of both numbers and expertise to support the level of operations envisioned in the proposed expansion plan. Delimitation
The proposed research will be limited to a comparison of expected results and impacts of expansion on the operations of Woodstocks West Inc. No effort will be made in this research to assess the adequacy of the firm's existing operational performance.
The proposed research will be specific to Woodstocks West Inc. It is not intended that the findings of the research performed shall be generalizable to any wider population of firms.
It is anticipated that most of the terms that will be used in the study will be readily understood by the general reader in the context of their conventional usage. Two terms, however, require some clarification. Return on equity refers to net income as a proportion of the net stockholder investment in the firm. Return on total investment refers to net income as a proportion of the total of net stockholder investment in the firm plus that amount of debt owed by the firm that has a maturity date longer than one year.
Any abbreviations u...