Answer:
10.7%
Explanation:
2% of the loan value added to the 8.7% of the loan value that you're paying in interest is ...
2% + 8.7% = 10.7%
The effective rate for this 1-year loan is 10.7%.
Answer:
Price of stock= $66.19
Explanation:
The price of preferred stock is the dividend payable discounted at the required rate of return of 12%.
Price = Dividend/required rate of return
Discount the dividend to to its worth in year year 5
Price = 14/0.12= 116.666
Step 2
Discount the dividend to year o
Price of stock = 116.66× 1.12^(-5)= 66.19
Price of stock= $66.19
Answer:
The annual inventory carrying cost of the safety stock = $594
Explanation:
Given that:
The average daily demand (d) = 50 units / day
The lead time (LT) = 20 days
The combined standard deviation of demand lead time = 20 units.
The item cost = $75
The inventory carrying cost = 24% of the item cost
i.e. (24/100) × 75 = $18 of the item cost
Let assume that the management of the company wants to offer a service level of 95%.
Then the z-value that relates to 95% confidence interval level = 1.65
So; the safety stock relating to the 95% service level =
= 1.65 × 20
= 33 units
Now:
The annual inventory carrying cost of the safety stock = Safety stock × Inventory carrying cost.
= 33 × $18
= $594
Answer:
Task / established
Explanation:
Internal control was created for a couple of reasons:
1. to ensure that there is no corrupt practices occurring from within the organization.
2. To ensure that every single employees are held accountable to the tasks that given to them
3. A way for managers to monitor the productivity rate of the team.
'Tasks' are a set of duties that the employees need to fulfill during the operation, If one employees fail to fulfill any of their tasks, it could become a hindrance for another employees.
The word 'Established' Indicated that the task is strongly structured by the higher ups and the employees have no right to change it without the permission from the higher ups.