Answer:
The computations are shown below:
Explanation:
a. The computation of the economic order quantity is shown below:
= 229 units
The carrying cost is come from
= $2.40 × 20%
b. Time between placement of orders is
= Economic order quantity ÷Annual demand
= 229 ÷ 280
= 0.8179 years
So,
= 0.8179 × 365 days
= 298.53 days
We assume 365 days in a year
c. The average annual cost of ordering cost and carrying cost equals to
= Holding cost + ordering cost
= (Economic order quantity ÷ 2 × Holding cost) + (Annual demand ÷ Economic order quantity × ordering cost)
= (229 units ÷ 2 × $0.48) + (280 ÷ 229 units × $45)
= $54.96 + $55.02
= $109.98
d)
Now the reorder level is
= Demand × lead time + safety stock
where, Demand equal to
= Expected demand ÷ total number of weeks in a year
= 280 pounds ÷ 52 weeks
= 5.38461
So, the reorder point would be
= 5.38461 × 3 + $0
= 16.15 pounds
Answer:
a.) The beta of an "average stock," or "the market," can change over time, sometimes drastically.
Explanation:
Estimation using betas in finance can be associated to the (CAMP) Capital Asset Pricing Model, it allows the calculation of volatility of the stock in relation to the market.
It should be noted that there are potential problems that can be experienced when estimating and using betas, and these are;
1) Sometimes, during a period when the company is undergoing a change such as toward more leverage or riskier assets, the calculated beta will be drastically different from the "true" or "expected future" beta.
2)The beta coefficient of a stock is normally found by regressing past returns on a stock against past market returns. This calculated historical beta may differ from the beta that exists in the future.
3)The fact that a security or project may not have a past history that can be used as the basis for calculating beta.
4) Sometimes the past data used to calculate beta do not reflect the likely risk of the firm for the future because conditions have changed.
Hence among the given option, option A is false.
Describe how you will operate your business in terms of your involvement. If I were to own and operate my own business, I would make sure to have a good management team in place that can handle business happenings incase I am not able to be there. I would want to be highly involved from training employees at lower levels, to making sure those who work in high positions all carry out the same ethics I would like the company to encompass. It would be important for me to be as involved and present in the business I own as possible
The ruppe is the basic monetary unit in india
