Answer:
Hub and spoke system
Explanation:
Costco Wholesale Corporation is a company that operates in the warehouse industry. They store merchandise at a lower cost than other wholesale or retail sources.
They aim to reduce warehousing cost for small and medium scale businesses.
In the hub and spoke system each component of the warehousing system are independent and contribute to the central warehousing activity.
It is also called the master feeder structure.
Freight traffic is moved to the central hub through spokes that are arranged around the centre like a wheel.
This system reduces the travel time and therefore is more efficient with lower cost
Answer:
Market capitalization - $155.26
Stock price - $26.77
Explanation:
The computation of the market capitalization is shown below:
= last year dividend × (1 + growth rate) ÷ (cost of capital - growth rate)
= $5.18 billion × ( 1 + 7.9%) ÷ (11.5% - 7.9%)
= $5.58,922 billion ÷ 3.6%
= $155.26
And, the stock price would be
= Market capitalization ÷ outstanding shares
= $155.26 ÷ 5.8 billion
= $26.77
Answer:
= $19.57
Explanation:
Price of the stock (P0) = Div1 / (r-g)
Div1 = next year's dividend = $2.25
r = required return = 12.25% or 0.1225 as a decimal
g = growth rate = 0.75% or 0.0075 as a decimal
Next, plug in the numbers to the formula;
Price (P0) = 2.25/ (0.1225 -0.0075)
Price (P0) = 2.25 / 0.115
= $19.57
