Answer:
The EOQ is 353 units
Explanation:
The economic order quantity or EOQ is the quantoty that minimized the holding and ordering cost for invetory.
The formula for EOQ is,
EOQ = √(2*D*O) / H
Where,
- D is the annual demand in units
- O is the ordering cost per order
- H is the holding cost per unit per annum
The annual demand of oil filters by Sam is,
Annual demand = 52 * 150 = 7800 filters
The EOQ for Sam Auto Shop is,
EOQ = √(2*7800*16) / 2
EOQ = 353.27 Units rounded off to 353 units
Answer:
the present value of the stock is 26.57
This will be the amount willing to pay per share today.
Explanation:
We have to calculate the present value of the future dividend
![\left[\begin{array}{ccc}Year&Cashflow&Present \: Value\\0&6&\\1&7&6.3636\\2&8&6.6116\\3&9&6.7618\\4&10&6.8301\\total&9.7&26.5671\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bccc%7DYear%26Cashflow%26Present%20%5C%3A%20Value%5C%5C0%266%26%5C%5C1%267%266.3636%5C%5C2%268%266.6116%5C%5C3%269%266.7618%5C%5C4%2610%266.8301%5C%5Ctotal%269.7%2626.5671%5C%5C%5Cend%7Barray%7D%5Cright%5D)
We will put each dividend and their year into the formula and solve for PV
First Year
Second Year
Third Year
Fourth Year
The value of the stock is the sum of the present value of their dividend
The sum for this firm is 26.5671 = 26.57
Answer:
D. $15,000,000
Explanation:
amount to be raised before 5%cost = $14,000,000 + $250,000
=$14,250,000
then:
100 - 5 = 95% ~~ $14,250,000
100% ~~ $ 15,000000
Therefore, the amount required to be raised is $15,000,000.