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The purpose of this study is to develop an econometric system to develop a strategic-planning model incorporating the interdependencies of the research and development (R&D), investment, dividend, advertising, and new-debt financing decisions. Such a model should be useful to management because it seeks to allocate resources in accordance with the set of seemingly incompatible objectives of maximizing dividends, capital expenditures, R&D, and advertising activities while minimizing the reliance upon external funding to generate future profits and produce the highest possible stockholder wealth. The firm has a pool of resources,