What is the average inventory held during the year

Assignment Help Financial Management
Reference no: EM13894225

Cheese burger and Taco Company purchases 16,806 boxes of cheese each year. It costs $18 to place and ship each order and $6.98 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders.

What is the average inventory held during the year?

Round the answer to the whole number

Reference no: EM13894225

Questions Cloud

Bonds on the market making annual payments : Essary Enterprises has bonds on the market making annual payments, with seven years to maturity, a par value of $1,000, and selling for $950. At this price, the bonds yield 6 percent. What must the coupon rate be on the bonds?
Is there a valid enforceable contract between chen and john : Is there a valid enforceable contract between Chen and John? What arguments could Chen use to support his refusal to pay John more than the original agreed price
Which of the is true of risk premium : Which of the following is true of risk premium?
What is yield to maturity of this bond : A Japanese company has a bond outstanding that sells for 95 percent of its ¥100,000 par value. The bond has a coupon rate of 6.2 percent paid annually and matures in 18 years. What is the yield to maturity of this bond?
What is the average inventory held during the year : Cheese burger and Taco Company purchases 16,806 boxes of cheese each year. It costs $18 to place and ship each order and $6.98 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders. What is ..
What is new predicted price without considering convexity : Consider a 4-year zero-coupon bond with a price of $792.09 per $1000 of face value. The yield is 6%, if the yield were to increase to 6.25%, what is the new predicted price without considering convexity?
What is the price value of a basis point for this bond : Consider a 4-year zero-coupon bond with a 6% yield to maturity. The bond price per $1000 of face value is $762.09. What is the price value of a basis point for this bond?
What are you paying for the current supplier : You face supplier offer terms of 1.5/10, net 40 with a late payment fee of 1.5% per month. A competing supplier offers terms of 2.5/5, net 60 with no stated late payment fee. Your annual borrowing rate is 18%. Assume a 365-day year and Sales per peri..
Forward premium for natural gas : Suppose there is 9-month forward premium for natural gas of 10% i.e. the forward price is 10% higher than the spot price. The risk-free rate 6% and the storage cost is paid continuously at 8%. What is the convenience yield for 9-month natural gas con..

Reviews

Write a Review

 

Financial Management Questions & Answers

  Analyze the financial statements

Analyze the financial statements (for the most recent complete year) based on the factors outlined - Description of the main products/services that the company provides

  How would you calculate their net worth

Fatimah and Ahmad, both 30 years old, own a house worth $120,000 and have a yearly income of $50,000, monetary assets of $15,000, two cars worth $30,000, and furniture worth $10,000. The house has a $100,000 mortgage, they have college loans of $15,0..

  What is fair price of this bond

A bond with a 12 percent quarterly coupon rate has a yield to maturity of 16 percent. The bond has a par value of $1,000 and matures in 20 years. Based on this information, what is a fair price of this bond?

  Enable michele to achieve her investment requirement

In order to fund her retirement, Michele requires a portfolio with an expected return of 0.11 per year over the next 30 years. She has decided to invest in Stocks 1, 2, and 3, with 25 percent in Stock 1, 50 percent in Stock 2, and 25 percent in Stock..

  Methods for evaluating possible capital projects

What are the various methods for evaluating possible capital projects, in terms of their possible benefits to the firm? Describe the benefits and/or shortcomings of each. What is the NPV profile and what are its uses?

  What will be the systems money supply

Assume a financial system has a monetary base of $25 million. The required reserves ratio is 10 percent and there are no leakages in the system. What is the size of the money multiplier? What will be the system’s money supply?

  Eoq model- very large increase in sales will result

According to the EOQ model, a very large increase in sales will result in

  Determined that the hypothetical cash flows generated

GE has determined that the hypothetical cash flows generated by this purchase would be of similar riskiness to its own total asset cash flows. You are an original owner of a publicly traded food service company called Smith’s Foods (SF). Your company..

  What is the present value of savings account

Suppose you invest $ 2,026 today to start a business. In 4 years you hope to sell this company for $ 8,865. What would be your annualized rate of return? Assume that, starting next year, you put $ 662 into a savings account that pays 9 % interest eve..

  Create a portfolio equally as risky as the market

You want to create a portfolio equally as risky as the market, and you have $500,000 to invest. Information about the possible investments is given below: Asset Investment Beta Stock A $ 146,000 .91 Stock B $ 134,000 1.36 Stock C 1.51 Risk-free asset..

  What determines the price of financial instruments

What determines the price of financial instruments? Which are riskier, capital market instruments or money market instruments? Why? What are the four major functions of the Federal Reserve System? What are the main responsibilities of the FOMC?

  What is the required return on the companys stock

Raffalovich, Inc., is expected to maintain a constant 5.6 percent growth rate in its dividends, indefinitely. If the company has a dividend yield of 4.1 percent, what is the required return on the company’s stock?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd