Answer:
200 units
Explanation:
For computing the number of units produced each time we need to applied the economic order quantity formula which is shown below:
where,
Annual demand is 1,600 units
Ordering cost per order is $25
And, the carrying cost or holding cost per unit per year is $2
Now placing these values to the above formula
So, the economic order quantity is
= 200 units
Answer:
(a) increase its dividend;
dividends are increased for two reasons:
- the company has excess cash and it doesn't have any possible investments on hand
- the board and upper management want to increase the stock price and higher dividends always result in higher stock prices, even if it is only in the short run.
(b) buy back some of its common stock shares;
- the company has excess cash and the board and upper management believe that the stock price is too low.
(c) pay down some of its debt;
- the company has excess cash and it considers that the cost of its debt is too high and it can get cheaper financing from other sources if needed.
(d) increase its use of internal financing;
- the board and upper management considers that the company needs to invest in new or existing projects and they consider that the financing costs are too high. Also, on the long run if things work well, the stock price should increase.
(e) take the public firm private
- the company has excess cash and the board and upper management believe that the stock price is too low. It is similar to (b) only on an extreme situation.
Answer: unitary price elastic
Explanation:
A good is unitary price elastic if a change in price leads to the same proportional change in quantity demanded.
The coefficient of a good with unitary elasticity is 1 .
Coefficient of elasticity = percentage change in quantity demanded / percentage change in price
= 5% / 5% = 1
I hope my answer helps you
Answer: Junk bonds
Explanation:
Junk bonds are a high-yielding high-risk security, that are issued by a company which is seeking to raise capital quickly to finance a takeover.
Junk bonds represent bonds that are issued by companies that are financially struggling and possess a high risk of not paying the interest or repaying the principal to investors. Junk bonds are a good investment for the investors who need the higher return and those that can also afford the higher risk.
