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2 years ago

The difference between the basic eoq model and the production order quantity model is that

1 answer:

3 0

EOQ stands for Economic Order Quantity. It is the order quantity that minimizes the total holding costs and ordering costs.
The difference between the basic EOQ model and the production order quantity model is that the production order quantity model does not require the assumption of instantaneous delivery.

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Company A estimates that it needs 30% of sales in net working capital. In year 1, sales were $1 million and in year 2, sales wer

Verizon [17]

Answer:

(B) outflow of $300,000

Explanation:

The change in net working capital of the Company A shall be determined through the following mentioned equation:

Change in net working capital=Percentage of sales in year 2-Percentage of sales in year 1

Change in net working capital=0.30*$2,000,000-0.30*$1,000,000

=$300,000 out flow

So based on the above calculations, the answer shall be (B) outflow of $300,000

5 0

2 years ago

Connor heard that as a general rule, he should spend no more than one week's pay on rent. If Connor's salary is $29,000 per year

Alja [10]

The answer is D:$558.

3 0

2 years ago

Read 2 more answers

Which organization provides leadership for the federal reserve system? board of governors congress department of the treasury fe

Setler79 [48]

It is the organization, the Board of Governors, a federal government agency, which provides to the Federal Reserve System its leadership. The Board of Governors is made up of seven members which have been U.S.President-appointed as well as confirmed by the United States Senate.

4 0

3 years ago

Easy Car Corp. is a grocery store located in the Southwest. It expects to pay an annual dividend of $6.30 next year to its share

emmainna [20.7K]

Answer:

Missing question "1. What is the cost of debt for Easy Corp? 2. How many interest payments are left for the bond of Easy Corp? 3. What is the interest payment per period for the bond? 4. What is the discount rate per period to use in pricing the bonds? 5. What is the market value of equity for Easy? 6. What is the cost of equity for Easy?"

1. Cost of debt is equal to YTM, which is equal to 10%

Cost of debt = YTM = 10%

2. Number of interest payment to be made is equal to 26 * 2 = 52

This is because payment is made semi annually

3. Interest payment per period = 8.9141% / 2 * $1,000

Interest payment per period = 4.45705% * $1,000

Interest payment per period = $44.57

4. As the period is semiannual, discount rate per period is equal to 10% / 2 = 5%

5. Market value of equity = 600,000*60 = $36,000,000

6. Cost of equity = Dividend price + Growth rate

Cost of equity = 6.3/60 + 0.05

Cost of equity = 0.105 + 0.05

Cost of equity = 0.155

Cost of equity = 15.5%

7 0

2 years ago

The process of earning compound interest allows a depositor or investor to earn interest on any interest earned in prior periods

Setler79 [48]

Answer:

A) true

Explanation:

Compound interest can be regarded as

adding of interest gotten to the principal sum of a deposit or the principal sum of a loan. It's one that is gotten after reinvesting of ones interest instead of paying it out, as a result of this the interest that comes in

next period will be earned on the principal sum along with those interests accumulated before. It should be noted the process of earning compound interest allows a depositor or investor to earn interest on any interest earned in prior periods.

6 0

2 years ago