If D = 8,400 per month, S = $43 per order, and H = $1.50 per unit per month, a) What is the economic order quantity? The EOQ is 694 units (round your response to the nearest whole number). b) How does your answer change if the holding cost doubles? The EOQ is whole number). units (round your response to the nearest
Q: An investment costs $1,025 and has a 20% probability of returning $524, a 20% probability of…
A: The risk level associated with a portfolio of the investment is known to be as value at risk of the…
Q: Anle Corporation has a current stock price of $21.99 and is expected to pay a dividend of $1.00 in…
A: As per the given information:
Q: You work for an outdoor play structure manufacturing company and are trying to decide between the…
A: Internal rate of return refers to the return that is earned on the investment made by the investors…
Q: Your firm has an average receipt size of $60. A bank has approached you concerning a lockbox service…
A: Under the lockbox system, the local bank collects the checks from nearby post office boxes where…
Q: 3. The proceeds of a 10,000-death benefit are left on deposit with an insurance company for seve…
A: Monthly payment of accumulated value is treated as an annuity payment for a fixed period.
Q: Suppose Marty borrows $300,000 at 4% for 30 years, monthly payments. The APR on the loan is 4.25%.…
A: Step 1: I/Y=4.25%/12N=12*30PV=300000CPT PMT=$1,475.82 Step 2:PMT=1475.82I/Y=4%/12N=12*30CPT…
Q: Suppose a 10-year, $1000 bond with a coupon rate of 8.4% and semiannual coupons is trading for…
A: > Given > Face value of bond (FV) = $1000> Coupon rate = 8.4%> Current price of bond…
Q: The information in the table applies to the day of investment in a mutual fund. Find (a) the net…
A: Investment: $6,400Fund assets: $925 millionFund liabilities: $41 millionShare outstanding: 40…
Q: (please correct and incorrect option explain and correct answer) Which of the following statements…
A: A common stock is a capital market security that gives the investor an ownership interest in the…
Q: 1) Why did you make the choices you did? What are the costs and benefits of these choices? 2) What…
A: Financial management is the aspect of management that is concerned with or manages all the…
Q: On the Apple tab, the slope and beta are the same value.
A: In general, the claim that "the slope and beta are the same value on the Apple tab" is false.
Q: As companies evolve, certain factors can drive sudden growth. This may lead to a period of…
A: Dividend yield refers to the amount of dividend received by the outstanding shareholders paid by the…
Q: Cullumber Clinic is considering investing in new heart-monitoring equipment. It has two options.…
A: The Internal Rate of Return (IRR) is a financial measure used to evaluate the profitability of an…
Q: Consider two mutually exclusive projects A and B: Cash Flows (dollars) Project Co C₁ C₂ NPV at 10% A…
A: Project AProject BC0-$39,000-$59,000C1$28,200$42,000C2$28,200$42,000NPV at 10%$9,942$13,893
Q: Use the following information for Exercises 25-27 below. (Algo) [The following information applies…
A: Net Income = Revenue - Expenses
Q: corpac Corporation has a dividend yield of 1.4%. Its equity cost of capital row at a constant rate.…
A:
Q: Future Cash Flows Initial investment Annual cash flows from operations (excluding depreciation) Cash…
A: Net present value (NPV):The NPV considers both the timing and magnitude of cash inflows and…
Q: Consider the accompanying balance sheet for a Canadian chartered bank. If an additional $2,000,000…
A: Deposit requirements, also known as reserve requirements, refer to the regulations imposed on banks…
Q: a. Find the NPV of the projects, will you accept/reject them? b. What is the IRR of the projects,…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: A 50-year-old engineer planning for retirement places 14% of his salary each year into a high-yield…
A: Future value is the compounded value of the future cash flow at a given interest rate for a given…
Q: A 30-year maturity, 8% coupon bond paying coupons semiannually is callable in five years at a call…
A: Yield to call refers to the rate of return when bonds are called before maturity at the call of…
Q: Washington Mutual was a US Bank which went bankrupt at the end of 2008 due to a number of risk…
A: Credit risk management is similar to trying to find a path through a network of financial…
Q: A boy is celebrating his 16th birthday and we lead 3000 on 17th 18th 19th and 20th birthday for his…
A:
Q: Suzy wants to retire in 30 years. She expects to live 25 years after retirement. She prepares a…
A: There is need of planning for retirement and that must be based on time value of money and based on…
Q: Parker & Stone, Incorporated, is looking at setting up a new manufacturing plant in South Park to…
A: Current market value of land = $4.9 million. The land was purchased 6 years ago for use as a…
Q: Derry Corporation is expected to have an EBIT of $3,100,000 next year. Depreciation, the increase in…
A: Share price:A share price, also known as stock price, is the current price at which a company’s…
Q: You have been given the following information: State of Economy Recession Normal Boom Probability of…
A: State of economyProbability of state of economyRate of return if state occurs Stock ARate of return…
Q: Given the following information: Price/Unit 225 VC/Unit 75 FC 500,000 Tax Rate 21% Rate…
A: Since the FBE is negative, calculating the annual operating cash flows using this value wouldn't be…
Q: CX Enterprises has the following expected dividends: $1.06 in one year, $1.24 in two years, and…
A: Dividend discount model is used to determine the current price of the stock. It uses expected future…
Q: A health insurance policy pays 75 percent of physical therapy costs after a deductible of $240. In…
A: The health insurance policy will pay 75% of the cost after a deductible of $240.It means out of…
Q: You purchased stock of Blue McBrushes Corp one year ago for $85 and generated a total return of 20%…
A: Given:Original price (P0) = $85Selling price (P1) = $89.50Total return (R) = 20%
Q: During the last accounting period, Sheridan Corporation sold 92000 units at $45 each. The variable…
A: Degree of operating leverage is a financial measure that helps to determine the impact on the net…
Q: wildhorse inc. plans to purchase equipment with a cost of 134000. The company expects annual net…
A: Payback period is the timeline required for an investment to recover its initial cash investment in…
Q: Henrie's Drapery Service is investigating the purchase of a new machine for cleaning and blocking…
A: IRR is the rate of return on the investment.It is the rate of return where NPV = 0If the cost of…
Q: Shatin Intl. has 9.7 million shares, an equity cost of capital of 13.3% and is expected to pay a…
A: A stock price is the current market value of a share of stock in a publicly traded company. It is…
Q: This first table describes prevailing market interest rates. Yield Market Data 0.05 Required: Using…
A: A bond is a debt instrument issued by governments, municipalities, or companies to raise capital.…
Q: Waller, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 8…
A: Maturity = 8 yearsCurrent price = $1042Coupon rate = 8%Tax rate = 21%To find: Pre-tax cost of debt
Q: The Faulk Corp. has a 7 percent coupon bond outstanding. The Yoo Company has an 11 percent bond…
A: The price of the bond changes with the change in interest rate and change in the coupon rate. If the…
Q: Summit Systems will pay a dividend of $1.48 this year. If you expect Summit's dividend to grow by…
A: As per the constant dividend growth model price of the stock will be equal to the present value of…
Q: A well-known industrial firm has issued $1000 bonds with a 3% coupon interest rate paid…
A: Par value: $1,000Coupon rate: 3%Payment: Semi annualMaturity: 10Price of the bond: $800
Q: A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a…
A: Given: Expected rateStandard deviationStock fund16%36%Bond fund10%27%Risk free…
Q: Refer to the following selected financial information from Hansen's, LLC. Comput the company's…
A: The debt-to-equity ratio is a financial measure that compares a company's total debt to its total…
Q: The stock of Business Adventures sells for $55 a share. Its likely dividend payout and end-of-year…
A: Stock price$55.00DividendStock priceBoom$2.10$65.00Normal…
Q: Salem plans to deposit $2200 every 6 months for 15 years to save for his son's higher education. The…
A: The objective of the question is to calculate the future value of a simple annuity where Salem…
Q: XYZ Inc. is deciding whether to buy a new building. The building will increase cash flows by…
A: The Net Present Value (NPV) of the project, assuming it is started today, is $29,081,382.32. …
Q: of gold is $6 per ounce and the price of gold is expected to increase at a rate of 5 percent per…
A:
Q: John wishes to borrow 20,000. Lender X and Y offer the following terms: (1) Lender X will be repaid…
A: Present value:Present value is popularly known in short as PV. It is a concept of accounting that…
Q: Suppose you have a stock market portfolio with a beta of .81 that is currently worth $580 million.…
A: Portfolio beta = 0.18Portfolio value = $580,000,000Delta = 0.30S&P index = 1,270
Q: On April 8, Fat Tires Ltd. borrowed $7000.00 with an interest rate of 4.2 %. The loan was repaid in…
A: The objective of the question is to calculate the final payment made by Fat Tires Ltd. to repay a…
Q: Your portfolio consists of two securities: Transcomm and MidCap. The expected return for Transcomm…
A: Transcomm expected return = 16.1%MidCap expected return = 6.1%Transcomm standard deviation (SD) =…
Step by step
Solved in 5 steps with 2 images
- If D = 8,400 per month, S = $43 per order, and H = $1.50 per unit per month, a) What is the economic order quantity? The EOQ is units (round your response to the nearest whole number).Suppose a company finds that shipping cost is 3,560 each month plus 6.70 per package shipped. What is the cost formula for monthly shipping cost? Identify the independent variable, the dependent variable, the fixed cost per month, and the variable rate.Suppose the marginal cost and marginal revenue (in ¢000) for a product produced by a company is estimated to be MC=q+35 MR=560+22q-q^2 Where q is the quantity produced and the firm’s break-even is 5 units per week You are Required to I. determine the total cost and the total revenue function in terms of q. II. estimate the output at which profit is maximize III. calculate the maximum profit
- 00 Let the demand function for a product be given by the function D(q) = – 1.55q+ 220, where q is the quantity of items in demand and D(q) is the price per item, in dollars, that can be charged when q units are sold. Suppose fixed costs of production for this item are $3, 000 and variable costs are $10 per item produced. If 34 items are produced and sold, find the following: - A) The total revenue from selling 34 items (to the nearest penny). Answer: $ B) The total costs to produce 34 items (to the nearest penny). Answer: $ mth 141.docx Type here to search 直。 a. dp f6 24 & 2. 5. tab slock altIf the gross profit rate on cost is 30%, what is the equivalent rate based on sales? (whole number and indicate % without space)Find out contribution margin if variable rate is.4 and the item's selling price is $12.50. (Round all intermediate calculations to hundredth of a decimal (.00) unless they naturally round up to tenth of a decimal or a whole number. Round the number of customers to a whole number.) Select one: O a $31.25 O b. $5 C. cannot be determined frorm the information given O d. $7.5
- a. what is the EOQ for a firm that sells 5,000 units when the cost of placing an order is $5 and the carrying cost are $3.50 per unit? b. how long will the EOQ last? how many orders are placed annually? c. as a result of lower interest rates, the finnancial manager determines the carrying cost are now $1.80 per unit. what are the new EOQ and annual number of objects?Assume that Demand (D) = 10,000 units and Ordering Cost (S) = $10 (per order). Suppose that we order at the Economic Order Quantity (EOQ) and the total inventory cost TC $500. What is the EOQ?E Perfect Pop spends $1.00 on direct materials, direct labour, and variable manufacturing overhead for every unt (12 pack of soda) it produces Fed manufacturing overhead costs $3 milion per yer The plant which is currently operating at only 70% of capacity, produced 15 million units this year Management plans to operate closer to full capacity next year, producing 20 million units Management does not anticipate any changes in the prices it pays for materials, labour, and manufacturing overhead Requirements Requirement a. What is the current total product cost for the 15 million units), including faed and varable costs? Determine the formula, then calculate the current total product cost milion millon GID Total product costs millon
- What is the EOQ for a firm that sells 5,800 units when the cost of placing an order is $5.20 and the carrying costs are $4.00 per unit? Round your answer to the nearest whole number. units How long will the EOQ last? Use the rounded value from the previous question. Assume 365 days in a year. Round your answer to the nearest whole number. days How many orders are placed annually? Assume 365 days in a year. Use the rounded value from the previous question. Round your answer to the nearest whole number. orders per year As a result of lower interest rates, the financial manager determines the carrying costs are now $2.2 per unit. What is the new EOQ? Round your answer to the nearest whole number. units What is the annual number of orders? Assume 365 days in a year. Use the rounded values of the new EOQ and duration of the new EOQ in your calculations. Round your answer to the nearest whole number. orders per yearRequirement 1. Calculate the EOQ. Begin by selecting the formula used to calculate EOQ. (D=Demand in units for one year, P=Ordering cost per purchase order, C=Carrying cost of one unit in stock, Q=Any order quantity.) ModifyingAbove EOQ equals StartRoot StartFraction 2 DP Over Upper C EndFraction EndRoot With Subscript EOQ=2DPC Part 2 (Round your answer to the nearest whole number.) The EOQ is 560 jerseys. Part 3 Requirement 2. Calculate the number of orders that will be placed each year. Determine the formula used to calculate the number of orders that will be placed each year, then calculate the orders per year. (Round your answer up to the nearest whole number.) ÷ = Number of ordersGive what is being asked?1. If total cost and Expenses is P300,000 at breakeven point how much is the total sales?2. The unit selling price of a product is P20, if the total sales for the month is 5,000 units and this is the breakeven point sales volume.Answer question A-C with yes or no.a. Will there be an income in case 6,000 units were sold?b. Will be there be an income in case 4,000 units were sold?.c. If additional units were sold after selling 5,000 units will there be an income?d. How much is the total cost and expenses if 5,000 units were sold?