This is a very broad question.
There are lots of relationships between business and supplier, but basically the supplier provides the resources for the business to perform its business function.
Answer:
9.48%
Explanation:
Data provided:
D₁ = $ 0.67
P₀ = $ 45.00
growth rate, g = 8%
Now,
the cost of the equity is given as:
Cost of the equity = (D₁ / P₀) + g
thus, on substituting the respective values, we get
Cost of the equity = (0.67 / 45) + 0.08
or
Cost of the equity = 0.0148 + 0.08
or
Cost of the equity = 0.0948
or
Cost of the equity = 0.0948 × 100% = 9.48%
Answer:
c. Domestic production of coffee falls, and Ectenia becomes a coffee importer.
Explanation:
As with a change in economic situations related to an individual product, it impacts the nation trading worldwide of that product.
In the given instance the domestic price of coffee falls, and then with this it is obvious that demand tends to increase, also because of decrease in price the contribution of companies domestically tends to decrease, therefore, the companies might not further produce coffee.
And with the resulting demand the country would have to import coffee beans.
Therefore, the correct answer is:
c. Domestic production of coffee falls, and Ectenia becomes a coffee importer.
Answer:
(a) 8 times
(b) 45.6 days
Explanation:
Given that,
Cost of goods sold = $500,000
Average inventory = $62,500
Assume 365 days a year.
(a) Inventory turnover ratio:
= Cost of goods sold ÷ Average inventory
= $500,000 ÷ $62,500
= 8 times
(b) Number of days' sales in inventory days:
= 365 days ÷ Inventory turnover ratio
= 365 days ÷ 8
= 45.6 days
