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katen-ka-za [31]
3 years ago
6

Suppose that the manager of a company has estimated the probability of a super-event sometime during the next three years that w

ill disrupt all suppliers as 2%. In addition, the firm currently uses four suppliers for its main component, and the manager estimates the probability of a unique-event that would disrupt one of them sometime during the next three years to be 20%. Supplier management costs during this period are $50,000 per supplier. The financial cost incurred if all four suppliers are disrupted at the same time is estimated to be $10,000,000. What is the expected monetary value (i.e., cost) of the current supplier diversification arrangement? Show the results by drawing the decision tree in POM-QM.

Business
1 answer:
laiz [17]3 years ago
5 0

Answer:

The expected monetary value(cost) of current supplier diversification arrangement is 415,680.

Explanation:

Find the given attachment.

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Barton Industries expects next year's annual dividend, D1, to be $2.00 and it expects dividends to grow at a constant rate g = 4
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Answer: See explanation

Explanation:

The flotation cost adjustment that must be added to its cost of retained earnings will be calculated thus:

= Expected dividend / [Current price × (1 - Floatation cost)] + Expected growth rate

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= 2.00 / (20.00 × 0.955) + 0.042

= (2.00/19.10) + 0.042

= 0.104712 + 0.042

= 0.146712

New cost of equity = 14.67%

You didn't give the cost of equity calculated without the flotation adjustment. Let's assume that this is maybe 11%, the floatation on adjustment factor = 14.67% - 11% = 3.67%

6 0
3 years ago
For critically ill patients, _____ provide the majority of energy.
valentina_108 [34]
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7 0
3 years ago
A town passes a zoning ordinance preserving the architectural style of an area and requiring plantings in the parking strips. Th
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8 0
2 years ago
What is the importance of training in profession?​
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4 0
2 years ago
Suppose you observe the following situation: State of Economy Probability of State of Economy Rate of Return if State Occurs Sto
klio [65]

Answer:

C. 7.81%

Explanation:

Stock A and Stock B expected Return shall be calculated using the following formula:

Stock A/B expected [email protected]*Return at [email protected]*Return at [email protected]*Return at Recession.

Stock A return=0.21*18.9%+0.74*15.8%+0.05*-24.6%

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Stock B return=0.21*9.7%+0.74*7.6%+0.05*4.2%

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