Answer:
(e) $3,873
(f) 200 units
Explanation:
(e)
Total carrying expenses:
= Average Inventory × carrying cost per unit
= 38.73 × 50
= $1,936.5
Annual order costs:
= Optimal number of orders each year × Cost per order
= 64.55 × 30
= $1,936.5
<pthus the="" overall="" expense="" is="" total="" of="" annual="" ordering="" and="" holding="" costs.="">
Therefore,
Total Cost:
= Annual Ordering Cost + Annual Holding cost
= ($1,936.5 + $1,936.5)
= $3,873
Consequently, the yearly total inventory cost amounts to $3,873.
(f) Reorder Point:
= Average Daily Sales × Delivery lead time
= (Annual demand ÷ Working days per year) × Delivery lead time
= (5,000 ÷ 250) × 10
= 200 Units
Thus, the reorder threshold is set at 200 units.
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Answer:
The current value of the share is $5.68.
Explanation:
To determine the stock's present price, we utilize the dividend discount model (DDM), which assesses the stock based on the current worth of projected dividends.
The formula to calculate today's stock price is:
P0 = D1 / (1+r) + D2 / (1+r)^2 +... + Dn / (1+r)^n + Terminal value / (1+r)^n
If dividends are expected to grow consistently, the terminal value is calculated when the growth rate becomes constant:
Terminal value = Dn * (1+g) / (r - g)
Where,
- g represents the constant growth rate for dividends
<pthus for="" our="" stock="" price="" calculation="" we="" have:="">
P0 = 0.65 / (1+0.145) + 0.70 / (1+0.145)^2 + 0.75 / (1+0.145)^3 +
(((0.75 * (1+0.02) / (0.145 - 0.02)) / (1+0.145)^3
Final calculation yields P0 = $5.678, rounded to $5.68.
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Response:
A. Initially, most ventures begin without formal financial backing
Explanation:
One must cultivate an idea and start on a small scale, as a solid business concept will attract investors. It’s not always necessary to possess immediate funds to commence. Thinking through, creating plans and proposals, and seeking investors are steps that don’t require upfront capital
Answer:
Obtain a credit line and secure insurance coverage.
Explanation:
To fulfill your monthly financial obligations, consider requesting an upfront credit facility from your organization if available, or inquire about a salary loan that can be deducted at source (from your salary).
To prepare for similar unfortunate circumstances in the future, it's essential to obtain life and health insurance coverage, either through your employer or independently.
