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3 years ago

The EOQ equation is derived by setting the annual purchase cost equal to the annual holding cost. True False

Business

1 answer:

vova2212 [387]3 years ago

3 0

Answer:

True

Explanation:

As the purchase cost is the variable cost that is the variable cost of the goods is expressed as the purchase units price x annual demand quantity and is P into D. And the holding cost is the average quantity in stocks and is q/2 and is given as H x Q / 2. Thus Q is an independent and is a function of the K, D, h

Hence the E.O.Q is given as Q = √2 Dk / h

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There is nothing that can be done when advertisers record and transmit their advertisement at higher volume than the

Naddik [55]

Answer:

This is false. The TV network is able to limit how often commercials and advertisements are played on their network channel.

7 0

2 years ago

Laurel, Inc., and Hardy Corp. both have 6 percent coupon bonds outstanding, with semiannual interest payments, and both are curr

stealth61 [152]

Answer:

A. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds?

Laurel, Inc. = -8.11%

Hardy Corp. = -18.91%

B. If interest rates were to suddenly fall by 2 percent instead, what would the percentage change in the price of these bonds be then?

Laurel, Inc. = +8.98%

Hardy Corp. = +25.49%

Explanation:

bonds with 6% semiannual coupons, sold at par $1,000

Laurel, Inc. bond maturity in 5 years

Hardy Corp. bond maturity in 18 years

the current price of a bond is the sum of the present value of its face value and coupons. I will use an annuity table to calculate PV of face value and an ordinary annuity table for the coupons:

Laurel, Inc.

market rate 4% = ($1,000 x 0.8203) + ($30 x 8.9826) = $820.30 + $269.48 = $1,089.78, % change = 89.78/1,000 = 8.98%

market rate 8% = ($1,000 x 0.6756) + ($30 x 8.1109) = $675.60 + $243.33 = $918.93, % change = -81.07/1,000 = -8.11%

Hardy Corp.

market rate 4% = ($1,000 x 0.4902) + ($30 x 25.489) = $490.20 + $764.67 = $1,254.87, % change = 254.87/1,000 = 25.49%

market rate 8% = ($1,000 x 0.2437) + ($30 x 18.908) = $243.70 + $567.24 = $810.94, % change = -189.06/1,000 = -18.91%

3 0

3 years ago

Westsyde Tool Company is expected to pay a dividend of $1.50 in the upcoming year. The risk-free rate of return is 6%, and the e

lawyer [7]

Answer:

Return on company's stock = 15.6%

Explanation:

The capital asset pricing model (CAPM) relates the price of a share to the market risk or systematic risk. The systematic risk is that which affects all the all the economic agents, e.g inflation, interest rate e.t.c

Using the CAPM , the expected return on a asset is given as follows:

E(r)= Rf +β(Rm-Rf)

E(r) =? , Rf- 6%, Rm- 14%, β- 1.2

E(r) = 6% + 1.2× (14- 6)%

= 6% + 9.6%

= 15.6%

Return on company's stock = 15.6%

7 0

3 years ago

Imprudential, Inc., has an unfunded pension liability of $800 million that must be paid in 24 years. To assess the value of the

Anon25 [30]

Answer:

101.12 million

Explanation:

The present value of a future cash flow is the amount that can be invested today at a particular rate for a certain number of years to have the future cash flow

The present value of the liability

= FV × (1+r)^(-n)

= 800 × (1.09)^(-24)

= 101.12 million

The present value of this liability= 101.12 million

7 0

4 years ago

Read 2 more answers

Janice creates computer generated graphics and animations. She creates special effects using film, video, computer programs and

AveGali [126]

B) Multimedia artist and animator

Explanation:

As she works in multimedia forms and creates special effects for film, video and computer program Janice will find her skills to be the most useful when she works as a multimedia artist and an animator.

It is a job with great scope and variety of work ranging from computer graphics, graphic designing and designing games and effects from films.

As it is a growing industry Janice will find different avenues as she carves out these niches for herself.

5 0

3 years ago

Read 2 more answers