It excludes money paid as salaries or wages to employees.
Answer:
Correct option is 6.59
Explanation:
Selling price of stock at the end of the year is $6.99. Annual return rate is 6%. Price of stock at the beginning will be present value of stock valued at the end discounted at 6%. Computation is as shown below:
= $6.59
Therefore, Stock's price in the beginning of the year is $6.59.
Answer:
(a) Linear model
Subject to:
(b) Standard form:
Subject to:
Explanation:
Given
Solving (a): Formulate a linear programming model
From the question, we understand that:
A has a profit of $9 while B has $7
So, the linear model is:
Subject to:
Where:
Solving (b): The model in standard form:
To do this, we introduce surplus and slack variable "s"
For 
inequalities, we add surplus (add s)
Otherwise, we remove slack (minus s)
So, the standard form is:
So, the linear model is:
Subject to:
Answer:
True statements:
Measuring and reporting quality costs does not solve quality problems.
Quality cost information helps managers identify the relative importance of quality problems.
The impact of customer ill will is generally not found on quality control reports.
Explanation:
When the quality cost is determined and reported so the same should not solve the problem of the quality also the information related to the quality cost helps the managers to identify the significance of the quality issue
The effect of the customer could not found on the reports made for quality control
But if there is a decrease in the quality cost so the improvement programs could not be implemented soon
Answer:
The maximum that should be paid for the stock today is P0 = $19.82758621 rounded off to $19.83
Explanation:
Using the zero growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = Dividend / r
Where,
-
r is the required rate of return
P0 = 2.3 / 0.1160
P0 = $19.82758621 rounded off to $19.83
