Answer:
$172,215,844 is the cost when flotation costs are considered
Explanation:
<em>flotation</em>
Weighted average flotation cost = {(Flotation cost debt * Weight debt) + (Flotation cost equity * Weight equity)
= (8% * 0.30) + (15% * 0.70)
=0.024 + 0.105
= 0.129
= 12.9%
Calculation of the cost of funds
Cost of funds = Amount raised / (1 - Weighted average floatation cost)
= $150,000,000 / (1-0.129)
= $150,000,000 / (0.871)
=$172,215,844
Therefore, the cost of raising fund is $172,215,844
Answer:
The correct answer is C. when income increases, demand for a normal good increases while demand for an inferior good falls.
Explanation:
The normal good is that whose quantity demanded for each of the prices increases when the rent increases. A lower good is one whose quantity demanded decreases when income increases. The inferior goods are usually those for which there are higher quality alternatives. When it comes to a normal good, increasing the income of the consumer increases the quantity demanded at each price. Causing a shift in demand to the right.
Answer:
COGS= $158.4
Explanation:
Giving the following information:
August 2: 10 units were purchased at $12 per unit
August 18: 15 units were purchased at $14 per unit
August 29: 12 units were sold.
First, we need to calculate the weighted-average purchasing price:
weighted-average purchasing price= [(10*12) + (15*14)]/25
weighted-average purchasing price= $13.2
COGS= 12*13.2= $158.4
Answer:
100 times per year
Explanation:
Data provided in the question:
Annual Demand , D = 320,000 boxes
Cost of storing one box, C = $10
Plant set up cost for production, c = $160
Now,
The optimal ordering quantity = 
or
The optimal ordering quantity = 
or
= 3200
Therefore,
Number of timer in year company produce boxes = 
= 
= 100 times per year
