Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
GEP Manufacturing is mulling over a plan to rent a proprietary inventory control system at an annual cost of $4.5 million. The firm predicts its sales will remain relatively stable at $585 million and its gross profit margin will continue to be 28 percent. It expects that as a result of the new inventory control system its average age of inventory (AAI) will drop from its current level of 83 days to about 46 days. The firm's required return on similar-risk investments is 12 percent. Assume a 365-day year.
a. Calculate GEP's average inventory investment both currently and assuming it rents the inventory control system.
b. Use your findings in part (a) to determine the annual savings expected to result from the proposed inventory control system.
c. Based on your finding in part (b), would you recommend that GEP rent the inventory control system? Explain your recommendation.
What complications are created by the fact that the party with a short position can choose to deliver any bond with a maturity of over 15 years?
Should hospitals and physicians Medicare patient stays and patient visits in order to reduce the possibility of being charged under the False Claims Act?
The company reports 2014 earnings per share of $6.50 on income before extraordinary items and $4.75 on net income. Which EPS figure would you consider more relevant to your investment decision? Why?
how large must his payments be to ensure that after retirement he will be able to draw $30.000 per year from this account until he is 80?
Dark Day sells for $93.85 per share, and the stock is about to go ex dividend. What do you think the ex-dividend price will be?
Perform a statistical test to see whether the average age of customers in the population is less than 46.4. Use the critical value approach and a 0.05 level of significance?
For the first part of this plan, we need to calculate the rate of return of our retirement savings will earn until we reach our retirement age (67 years old). To do this we are, you will need to estimate the 5-year average rate of return of the st..
A stock had returns of 16 percent, 4 percent, 8 percent, 14 percent, -9 percent, and -5 percent over the past six years. What is the geometric average return for this time period?
Determine the net proceeds of each bond and the cost of the bonds for each company in terms of yield. The bond yield in the table is the market yield before the commission is charged.
PepsiCo's operating income was $8.04 billion in 2009 and $6.96 billion in 2008. Based on these figures, which company had higher operating leverage?
Selling and administrative expenses were 10 percent of sales. Depreciation expense was $18,000 and interest expense for the year was $9,000. The firm's tax rate is 27 percent. What is the dollar amount of taxes paid?
Draw a short- run aggregate supply curve. - Why is the curve upward sloping? - What causes the short- run aggregate supply curve to shift?
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd