Securities are investments that have value and are traded between other people. Securities can be bought or sold and are able to be used as a medium in exchange for something else. Securities are also known as stocks, bonds and mutual funds. The value of securities are determined by the type, amount and current economic rate.
Answer:
<u>Using related diversification to achieve value by integrating vertically in order to acquire market power.</u>
Explanation:
First, let's understand what are the stages of a supply chain, they are:
- commodities
- manufacturing
- distribution
- retail
In this regard, we can see that Shaw Industries controls more than one stage of its supply, commodities and manufacturing chain, which characterizes vertical integration.
Therefore, the most appropriate alternative to the question is that the company gains a greater market gain with this strategy because it increases the management and quality control, by ensuring that the inputs and processes are in accordance with its standards, which guarantees a product of higher quality and consequently better positioned on the market.
For this question you can use the CAPM formula:
E(rs) = risk free + (market return - risk free rate)*(beta)
=4.5% + (10.8% - 4.5%) * 1.3
= 4.5% + 8.19%
= 12.69%
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Answer:
time between orders 25 working days
yearly ordering cost: $150
Explanation:
The annual demand is 4,000 units if order size is 400 units there will be 10 orders per year
Given a year of 50 weeks: every 5 weeks an order will be placed.
As each week has 5 working days that would mean every 25 working days
Then, total order cost:
each order cost $15 to place as there are 10 order per year it will be $150 ordering cost.
