Answer:
Expected dividend yield = 10.0%
Expected capital gains yield = 5.0%
Explanation:
D0 = $1.50 (Given)
E(D1) = D0 * (1 + g) = $1.50 * (1.05) = $1.575
E(P0) = $15.75 (Given)
E(P1) = $15.75 * (1.05)1 = $16.5375
Expected dividend yield = E(D1) / E(P0)
= $1.575 / $15.75 = 0.100 = 10.0%
Expected capital gains yield = (E(P1) - E(P0)) / E(P0)
($16.5375 - $15.75) / $15.75 = 0.050 = 5.0%
Answer:
B. Greater efficiency
Explanation:
Efficiency, in this case, will refer to achieving the desired results with minimal or no wastage. A distribution manager has the responsibility to ensure goods get to their destination as scheduled. The manager's efficiency will be gauged by the speed, accuracy, and safety of deliveries.
Other than cost savings, the distribution manager has to aim at achieving greater efficiency. Customer service and pricing are functions of other managers.
Answer and Explanation:
The computation of the service level and the corresponding optimal stocking level is shown below:
Given that
Selling price = SP = $4.50
Cost price = CP = $3.00
So,
Salvage value = V = $1.50
Average daily demand (d) = 35 quarts
The standard deviation of daily demand = 4 quarts
based on the above information
Overage cost = (Co) is
= CP - V
= $3.00 - $1.50
= $1.50
Now
Underage cost= (Cu)
= SP - CP
= $4.50 - $3.00
= $1.50
So,
Service level is
= Cu ÷ (Co + Cu)
= 1.50 ÷ (1.50 + 1.50)
= 1.50 ÷ 3.00
= 0.50
= 50%
Now
At 50 % service level, the value of Z is 0
So,
Optimal stocking level is
= d + Z × standard deviation
= 35 + (0 × 4)
= 35 + 0
= 35 quarts
