Answer:
8.45%
Explanation:
The formula used to calculate WACC is:
WACC = {[total equity/(total debt + equity)] x cost of equity} + {[total debt/(total debt + equity)] x cost of debt x (1 - tax rate)}
first we have to calculate the cost of equity:
cost of equity = risk free rate + (beta x market risk premium) = 4% + (1.2 x 7.5%) = 4% + 9% = 13%
now, WACC:
WACC = {[880/(880+880)] x 13%} + {[880/(880+880)] x 6% x (1 - 35%)} = (0.5 x 13%) + (0.5 x 6% x 0.65) = 6.5% + 1.95% = 8.45%
WACC = weighted average cost of capital is the rate at which the company effectively finances its assets
Answer:
The appropriate solution is:
(a) 2828 cases each time
(b) $4005656.85
(c) $3609800
Explanation:
The given values are:
Annual demand,
D = 200,000 cases
Per case cost,
C = $20
Carrying host,
H = 
= $
Ordering cost,
S = $40
(a)
The economic order quantity will be:
⇒ 
On substituting the values, we get
![=\sqrt{[\frac{(2\times 200000\times 40)}{2} ]}](https://tex.z-dn.net/?f=%3D%5Csqrt%7B%5B%5Cfrac%7B%282%5Ctimes%20200000%5Ctimes%2040%29%7D%7B2%7D%20%5D%7D)
(b)
According to the question,
The annual ordering cost will be:
= 
= 
= 
($)
The annual carrying cost will be:
= 
= 
= 
($)
The annual purchase cost will be:
= 
= 
= 
($)
Now,
The total inventory cost will be:
= 
= 
($)
(c)
According to the question,
Order quantity,
Q = 10000 cases
Per case cost,
C = $18
Carrying cost,
H = 
= 
The annual ordering cost will be:
= 
= 
= 
($)
The annual carrying cost will be:
= 
= 
= 
($)
The annual purchase cost will be:
=
= 
= 
Now,
The total cost of inventory will be:
= 
= 
($)
Answer:
Efficiency = Actual Output / Effective Capacity * 100%
Utilization = Actual Output / Design Capacity * 100%
Loan processing operation
Actual output = 9 loans per day
Design capacity = 10 loans per day
Effective capacity = 8 loans per day
Utilization = 9/10 * 100
Utilization = 90.0%
Efficiency = 9/8 x 100
Efficiency = 112.5%
Furnace repair team
Actual output = 3 furnaces per day
Design capacity = 9 furnaces per day
Effective capacity = 8 furnaces per day
Utilization = 3/9 * 100
Utilization = 33.3%
Efficiency = 3/8 * 100
Efficiency = 37.5 %
Answer:
Most likely
Explanation:
Artesian or spring waters come from a natural source but are bottled off-site and are processed and purified. Mineral water could be natural spring water or artesian water, comes from an underground source, and contains at least 250 parts per million (ppm) of dissolved solids, including minerals and trace elements.
Artesian water is just water that naturally flows out of the ground, usually through a well. Springwater is also water than naturally flows out of the ground. ... Most drillers and laymen label waters as 'artesian' if they rise naturally to a level above the ground surface, and if unrestricted, flow freely out.
Answer:
B. Power is proportionally spread to top, middle and first line managers
Explanation:
Decentralization is a do of the power structure in an organization or firm, in which the power or authority to make a decision is spread throughout each line or department of the firm or organization.
The main advantage of decentralization is that it allows swift decisions to be taken, and reduces unnecessary bureaucracy.
Hence, the statement that is correct of decentralization is "Power is proportionally spread to top, middle and first-line managers"
