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Fofino [41]
4 years ago
5

A certain type of computer costs $10 per unit, and the annual holding cost is 25% of the value of the item. Annual demand is 1,0

00 units, and the order cost is $150 per order. What is the approximate economic order quantity? 346 120,000 866 1095 110
Business
1 answer:
lukranit [14]4 years ago
0 0

Answer:

Annual demand (D) = 1,000 units

Ordering cost (Co) = $150

Holding cost per item per annum = 25% x $10 = $2.50

EOQ = √2DCo

                H

EOQ = √2 x 1,000 x $150

                  $2.50

EOQ = 346 units

Explanation:

EOQ is the square root of 2 multiplied by annual demand and ordering cost per order divided by holding cost per item per annum. EOQ is the quantity of stock that is bought each time a replenishment order is placed.

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Synovec Corporation is expected to pay the following dividends over the next four years: $5.20, $16.20, $21.20, and $3.00. After
umka21 [38]

Answer:

Present value = $92.6899 rounded off to $92.69

Explanation:

Using the dividend discount model, we calculate the price of the stock today. It values the stock based on the present value of the expected future dividends from the stock. To calculate the present value of the next four dividends, we will use the following formula,

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Where,

  • r is the required rate of return
  • g is the constant growth rate in dividends

Present value = 5.2 / (1+0.09)  +  16.2 / (1+0.09)^2  + 21.2 / (1+0.09)^3  +  

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Airida [17]

Answer:

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