How much of your reorder point in part b) is safety stock?
Daily demand for packages of five videotapes at a warehouse store is found to be normally distributed with mean 50 and standard deviation 5. When the store orders more tapes, the ordering cost is $42 and the orders take four days to arrive. Each pack of tapes costs $7.20, and there is a 24% annual holding cost for inventory. Assume the store is open 360 days a year.
16.45
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The ?rst step in the team organization process is
A) selecting a meeting format B) identifying roles C) training the members D) recruiting members
Green Planet, Inc., a manufacturer of air filter systems for industrial facilities, is considering the addition of a new system to its current product line. The following data has been forecasted:
1. The market value of the firm’s debt is $300,000, and it has $150,000 in marketable securities. The company also has 10,000 shares of preferred stock that pay an annual dividend of $0.75 per share. Investors require a rate of return of 7% on preferred stocks of similar risk. The firm has 100,000 shares of common stock outstanding, and its weighted average cost of capital is 12%. The expected tax rate is 35% in the next two years and 40% after that.
a) Calculate the free cash flow for each of the next four years.
b) After 2021 the firm’s free cash flow is expected to grow at 5% per year indefinitely. What is the value of the stock today?
c) Assume that after 2021 the firm’s free cash flow is expected to grow at 9% per year for four years. After that time, the firm’s free cash flow will grow at 5% indefinitely. Using the two-stage dividend growth model, what is the value of the stock? Calculate your solution twice, first using equation 9-5 on page 260 and then using the FAME_TwoStageValue user-defined function.
e) Assume that the transition between 9% and 5% will be gradual rather than instantaneous. The forecasted transition period is 3 years. Using the H Model, what is the value of the stock? Calculate your solution twice, first using equation 9-8 on page 264 and then using the FAME_HModelValue user-defined function.
The ________ certifies mastery of project manager competencies through a formal examination that covers the entire body of knowledge of project management.
What will be an ideal response?
On January 1, Year 1, Eller Company purchased an asset that had cost $24,000. The asset had an 8-year useful life and an estimated salvage value of $1,000. Eller depreciates its assets on the straight-line basis. On January 1, Year 5, the company spent $6,000 to improve the quality of the asset. How does the Year 5 depreciation expense impact the elements of the financial statements?
A. Increase stockholders' equity by $4,625 B. Decrease stockholders' equity by $4,375 C. Decrease total assets by $4,625 D. Increase total assets by $4,375