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3 years ago

Importers' bank usually issues a ________ to importers in international transactions.

1 answer:

8 0

Importers' bank usually issues a letter of credit to importers in international transactions.

A letter of credit is issued by a bank, most common from another country, to guarantee the payment to be made under agreeable circumstances. This is a way to ensure and product the two people doing business that one will get the items and one will be paid for them.

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Crusher Company has provided the following data for maintenance cost:

Firdavs [7]

Answer:

Total Fixed Cost: $13,020

Explanation:

Fixed cost is calculated using high low method.

High low method seeks to find variable cost per hour / unit by dividing the difference of cost (total cost at two levels) with difference of activity level. Than variable cost is reduced from total cost to identify the fixed cost. Below is the calculation:

Current year cost: $ 37,850 Current year machine hours: 19,100

Prior year cost: $ 33,300 Prior year machine hours: 15,600

Variable cost per machine hour = Current year cost - Prior year cost

Current year machine hour - prior year machine hour

Variable cost per machine hour: 37,850 - 33,300 = $1.30 per machine hour

19,100 - 15,600

Variable cost current year: ($1.30 * 19,100) = $24,830

Variable cost prior year: ($1.30 * 15,600) = $20,280

Fixed cost: Total cost - variable cost

Fixed cost current year: 37,850 - 24,830 = $13,020

Fixed cost prior year: 33,300 - 20,280 = $13,020

7 0

3 years ago

Barbara needs to add more staff in order to complete her project on time. Which pathway would best aid Barbara in finding qualif

jeka94

Your answer is Human Resources

Hope it helps!

4 0

3 years ago

Read 2 more answers

Difference between accounts payable and accounts receivable

algol13

Payable=outcome
receive=Income

8 0

3 years ago

Adams and Collin Enterprises expect earnings and dividends to grow at a rate of 25% for the next 4 years, after the growth rate

ollegr [7]

Answer:

the intrinsic value of the stock is 42.97

If the stock is priced at 40 dollars it would be a good idea to purchase the share as will provide a better yield than the cost of capital of 9.6%

Explanation:

First, we solve for the cost of equity using the CAPM:

$Ke= r_f + \beta (r_m-r_f)$

risk free = 0.03

market rate = 0.09

premium market = (market rate - risk free) = 0.055

beta(non diversifiable risk) = 1.2

$Ke= 0.03 + 1.2 (0.055)$

Ke = 0.09600

Now we solve for the intrinsic price using the gordon model

with multi-stage growth:

First, we calcualte the future dividends

grow rate Dividends

0 1.25

1 0.25 1.5625

2 0.25 1.953125

3 0.25 2.44140625

4 0.25 3.051757813

4 0.03 3.143310547

Now in the last year, we calcualte using the gordon model or constant grow:

$\frac{3.143310547}{0.096-0.03} = Intrinsic \: Value$

32.7128182

Now we calculate and add together the present value of each of this future cash flow to determnate the intrinsic value ofthe share:

$\frac{Principal}{(1 + rate)^{time} } = PV$

Present Value

1 1.5625 / (1+0.096)^1 = 1.425638686

2 1.953125 / (1+0.096)^2 = 1.625956531

and so on, giving the following values:

3 1.854421226

4 2.114987712

present value of the future dividends at 3% 22.67126448

Finally we add them and get:

42.97160726

8 0

3 years ago

Burger Prince buys top-grade ground beef for $1.00 per pound. A large sign over the entrance guarantees that the meat is fresh d

Gnoma [55]

Answer:

The optimal order quantity is 316 pounds

Explanation:

In order to calculate What daily order quantity is optimal, we have to calculate first The cost of underestimating the demand Cu and cost of overestimating demand Co

Cu = ($0.60 - $0.50)*4 = $0.40

Co = $1 - $0.80 = $0.20

Next we have to calculate the Service Level = Cu / (Cu + Co)

= 0.40 / (0.40 + 0.20)

= 0.40/0.60

= 0.6667

So, Z Value at above service level = 0.430727

Therefore, in order to calculate the Optimal Order quantity, we would have to use the following formula

Optimal Order quantity= Mean + Z Value × Std Deviation

= 301 + 37 * 0.430727

= 301 + 15.36899

= 316 pounds

7 0

3 years ago