Answer: A - saver or as a supplier of funds
Explanation: From the above question, Monika is a saver because her income exceeds her expenses.
In this case she saves more on a regular basis because she controls her expenses and would not allow her expenses to be more than her income.
Going further, she is also a supplier of funds as her excess funds kept in the bank is a source of funds for the bank to loan out to generate interest.
Answer:
$63.01
Explanation:
The share price today is the present value of expected future cash flows which in this case are the expected future dividends and the terminal value of dividends beyond the 3rd year.
Year 1 dividend =$2.2
Year 2 dividend =$3.9
Year 3 dividend =$4.8
Terminal value=Year 3 dividend*(1+constant growth rate)/(required rate of return-constant growth rate)
constant growth rate=2%
the required rate of return=9%
Terminal value=$4.80*(1+2%)/(9%-2%)
Terminal value=$69.94
Present value of a future cash flow=cash flow/(1+required rate of return)^n
n is 1 for year 1 dividend, 2 for year 2 dividend , 3 for year 3 dividend, and terminal value(terminal value is stated in year 3 terms)
stock price=$2.2/(1+9%)^1+$3.9/(1+9%)^2+$4.8/(1+9%)^3+$69.94/(1+9%)^3
stock price=$63.01
Answer: See explanation
Explanation:
a) What is the economic order quantity?
This will be:
= ✓[(2 × Demand × Ordering Cost)/(Holding Cost)]
= ✓(2 × 15700 × 77 / 22)
= ✓109900
= 331 approximately
b) What are the annual holding costs?
Holding Cost = Average Inventory × Holding cost for item
= 331/2 × $22
= $3641
c) What are the annual ordering costs?
This will be calculated as:
= (Annual Demand/EOQ)*Ordering Cost
= (15700 / 331) × 77
= $3652
d) What is the reorder point?
Reorder point = Daily Demand × Lead Time
= (15700/300) × 3
= 157 units
Answer:
differential loss for 14,700
Explanation:
![\left[\begin{array}{cccc}&$Make&$Buy&$Differential&\\$Variable Cost&-73,500&-88,200&-14,700&\\$Fixed cost&-29,400&-29,400&0&\\$Total&-102,900&-117,600&-14,700&\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccc%7D%26%24Make%26%24Buy%26%24Differential%26%5C%5C%24Variable%20Cost%26-73%2C500%26-88%2C200%26-14%2C700%26%5C%5C%24Fixed%20cost%26-29%2C400%26-29%2C400%260%26%5C%5C%24Total%26-102%2C900%26-117%2C600%26-14%2C700%26%5C%5C%5Cend%7Barray%7D%5Cright%5D)
We multiply the variable copst per unit by the 14,7000 units
then we add the fixed cost for the total cost for the make option
Then, we multiply the 14,700 by 6 for the buy option and add the unavoidable fixed cost.
In this case, it is not convinient to buy the assembly part as it would incour in a differential loss for 14,700
