On average this item will be ordered "once a <span>month".
We can find the order interval by dividing the EOQ (economic order quantity), in above situation that is equal to 100 and annual demand is equal to 1200.
So, the time interval in which this item will be ordered;
100/1200 = 1/12
it means 1/12th of a year that is equal to once a month.
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Answer: is highly dependent upon a company's tax rate.
Explanation:
The after-tax cost of debt is defined as the net cost of debt that is determined by adjusting the gross cost of debt incurred for its tax benefits. The after-tax cost of debt
equals the pre-tax cost of debt which is then multiplied by (1 – tax rate).
The after-tax cost of debt is the cost of debt which is included while calculating the weighted average cost of capital and it has a greater effect on the cost of capital of a firm when there's an increase in the debt-equity ratio.
Social responsibility, fair pricing and truth in advertising.
The three out of four in the choices is classified as a selling expense such as sales salaries, delivery expense, and advertising expense. This three are under the account of selling expense while the Cost of good sold or for short COGS is also classified as an expense but the cogs we sold needs to be matched <span>with the pertinent sales on the </span>income<span> statement.</span>
Answer:
Explanation:
The one-month liquidity index value for this DI's asset portfolio
= weight of T-bills * (value of T-bill today / value of T-bills after one month) + weight of real estate loan * (value of real estate loan today / value of real estate loan after one month)
= 50% * ($97 / $ 100) + 50% ($93/ $94)
= 0.5 * 0.97 + 0.5 *0.9894 = 0.9797
Therefore one-month liquidity index value for this DI's asset portfolio is 0.98.