Answer:
The correct answer to the following question is option E) 9.06% .
Explanation:
Here the cost of equity given is - 11.8%
Pre tax cost of debt- 6.9%
Tax rate- 35%
So the after tax cost of debt - 6.9% x 65%
= 4.485%
The debt to equity ratio - .6
So the weight of debt - .6 / ( 1 + .06 )
= .375
Weight of equity - 1 / ( 1 + .06 )
= .625
Weighted average cost of capital =
Debts cost x weight of debt + Equity cost x weight of equity
= 4.485 x .375 + 11.8 x .625
= 1.681875 + 7.735
= 9.06%
Answer: 90.32%
Explanation:
Weekly demand (d) = 120
Standard deviation = 10
Lead time (l) = 4
Reorder point = 506
The reorder point is calculated as:
506 = 120 × 4 + Z × 10 × ✓4
Solving for Z will give us 1.3
Then, we check this in the z table which will give us p = 0.9032
Therefore, the service level is 90.32%.
Answer:
C, none of the choices
Explanation:
from the qeustion, it can be seen that Uri was offered a test ride of the car but he clearly refused. For him to have bought that car without a test drive and later realise the car has a faulty suspenion, he cannot rescind the contract on any of the bases because if he had agreed to the test drive, he would have found out about the faukty suspension and woudn't have bought that car.
It is clearly Uri's fault that he ended up with a car that has a faulty susppension. this isn't a case of fraud or mistake on the part of Stan, neither did Stan unduely influence him to buy the car according to the question.
Cheers.