Answer:
B) greater than $30 but less than $40
Explanation:
the options are missing:
A) less than or equal to $30
B) greater than $30 but less than $40
C) greater than $40 but less than $50
D) greater than $50
we must first calculate safety stock = (Z-score x √lead time x standard deviation of demand) + (Z-score x standard deviation of lead time x average demand)
- Z-score for 98% confidence level = 2.326
- standard deviation of demand = 30
- √lead time = √5 = 2.23607
- we are not given any standard deviation of lead time, so we can assume that it is 0
safety stock = (2.326 x √2.23607 x 30) + (2.326 x 0 x 300) = 156.03 ≈ 156 units
the annual holding cost of 156 units = 156 x $0.25 = $39
Answer:
The cash payments for Finch Company in the month of June is $185,600.
Explanation:
Cash payment : Cash payment is that payment which is deals only in cash or the payment is only paid in cash.
So,
To compute the cash payment for June month, the following things is need to be considered.
1. Manufacturing cost of April and May
All other cost like - insurance cost, property tax is not need to be considered because it is not related to may month.
So,
= 3÷4 of May month + 1÷4 of April month
= 3÷4 × $195,200 + 1÷4 × $156,800
= $146,400 + $39,200
= $185,600
Hence, The cash payments for Finch Company in the month of June is $185,600.
Answer:
= $52.78 per share
Explanation:
<em>The value of a business can be determined using the free cash flow model. According to this model, the value of a firm is is the present value of its free cash flow discounted at the weigthed average cost of capital (WACC.)</em>
<em>The value of equity is the value of firm less value of other instruments (e.g debt and preferred stocks)</em>
<em>Value of equity = Value of the entire firm - Value of debt </em>
We can work out the the value per share using the steps below:
<em>Step 1</em>
<em>Calculate the total value of the firm</em>
Value of firm = 27.50/(0.1-0.07)
= $916.66 million
<em>Step 2</em>
<em>Calculate the value of equity</em>
<em>Value of equity = Value of the entire firm - Value of debt</em>
= $916.66 million - $125.0 million
=791.666 million
<em>Step 3</em>
<em>Calculate the value per share</em>
Value per share = Value of equity/ units of common stock
=$791.666 million/15 million units
= $52.78 per share
Answer: 17.56%
Explanation:
Given that,
Leonardo taxable income = $90,000
Tulsa bonds = $8,750
Theresa taxable income = $50,000
Computation of Leonardo's Tax:
According to the tax rate schedule,
Total Tax = Tax + 24% of taxable income over $82,500
= $14,089.50 + 24% × $7,500
= $14,089.50 + $1,800
= $15,889.5
Computation of Theresa's Tax:
According to the tax rate schedule,
Total Tax = Tax + 22% of taxable income over $38,700
= $4453.50 + 22% × $11,300
= $4453.50 + $2,486
= $6939.5
Total tax on Leonardo's income and Theresa's income:
= $15,889.5 + $6939.5
= $22,829
Effective tax rate = 
= 
= 17.56%
Answer:
The correct answer is D. increase; decrease.
Explanation:
Speculation consists of the purchase (or sale) of goods with a view to their subsequent resale (repurchase), when the reason for such action is the expectation of a change in the prices affected with respect to the dominant price and not the gain derived from its use, or of some kind of transformation carried out on these or of the transfer between different markets.
A speculative operation seeks not to enjoy the good or service involved, but to obtain a benefit from the price fluctuation based on the theory of arbitration. In an extensive sense, every form of investment that a medium entails is speculative; However, the term is usually applied to that investment that does not entail any kind of commitment to the management of the assets in which it is invested, and is limited to the movement of capital (financial market), usually in the short or medium term.
The speculation is based on the forecast and the perception, so that the speculator can also be wrong if he does not correctly anticipate the evolution of future prices, so he will have to sell cheap something he bought expensive. The speculative market therefore rewards those who know how to predict.
