Large decrease in inventory little additional inventory

Assignment Help Financial Management
Reference no: EM13877698

According to the EOQ model, a very large increase in sales will result in a very large increase in inventory a decrease in inventory either a or b could be correct a large decrease in inventory little additional inventory.

Reference no: EM13877698

Questions Cloud

Rather than own a five-year bond and a fifteen-year bond : Rather than own a five-year bond and a fifteen-year bond, suppose you sell both of them and invest in two ten-year bonds. Each has a coupon rate of 8 percent (semi-annual coupons) and has a yield to maturity of 9.20 percent. What is the value of your..
What is the value of your portfolio : You own a two-bond portfolio. Each has a par value of $1,000. Bond A matures in five years, has a coupon rate of 8 percent, and has an annual yield to maturity of 9.20 percent. Bond B matures in fifteen years, has a coupon rate of 8 percent and has a..
What is the equipments after-tax salvage value : Kasper Film Co. is selling off some old equipment it no longer needs because its associated project has come to an end. The equipment originally cost $22,500, of which 80% has been depreciated. The firm can sell the used equipment today for $7,500, a..
What is the fundamental function of the insurance company : What is the fundamental function of the insurance company--- in other words, what is it the insurance company does that makes the insurance mechanism work? A. It pools those insured’s having similar risks, and predicts the losses that those in the po..
Large decrease in inventory little additional inventory : According to the EOQ model, a very large increase in sales will result in a very large increase in inventory a decrease in inventory either a or b could be correct a large decrease in inventory little additional inventory.
What are the risk-adjusted on-balance-sheet assets : Third Bank has the following balance sheet (in millions), with the risk weights in parentheses. What are the risk-adjusted on-balance-sheet assets of the bank as defined under the Basel Accord? To be adequately capitalized, what are the CET1, Tier I,..
What will be alabasters cost of equity : Alabaster Incorporated wants to be levered at a debt to value ratio of .6. The cost of debt is 9%, the tax rate is 35%, and the cost of equity for an all equity firm is 12%. What will be Alabaster's cost of equity?
Compute the nelsons taxable income : Tim and Monica Nelson are married, file a joint return, and are your newest tax clients. They provide you with the following information relating to their 2013 tax return: 1. Tim works as a pediatrician for the county hospital. The W-2 form he receiv..
What is the percentage change in the price for each bond : A bond trader purchased each of the following bonds at a yield to maturity of 8%. Immediately after she purchased the bonds, interest rates fell to 7%. What is the percentage change in the price for each bond after the decline in interest rates?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the average amount of receivables

McDowell Industries sells on terms of 3/10, net 40. Total sales for the year are $779,500; 40% of the customers pay on the 10th day and take discounts, while the other 60% pay, on average, 54 days after their purchases. What is the average amount of ..

  Sunk costs concept associated with making capital investment

Define the sunk costs concept associated with making capital investment decisions. Discuss why this concept is important for the investor to factor into the decision-making process.

  How do you determine if the company has too much liquidity

Defines how solvency and liquidity differ and provides an example of two companies. As a financial manager, what can you do to make sure your company stays solvent and is not too liquid?

  Difference between sensitivity analysis-scenario analysis

Explain the difference between sensitivity analysis and scenario analysis. Offer and argument for the proposition that scenario analysis offers a more realistic picture of a project’s risk than does sensitivity analysis

  Analyze the current financial state of anthonys orchard

Review the readings and media for this unit, including the Anthony's Orchard case study media - Familiarize yourself with the Anthony's Orchard company and its current situation

  Company stays solvent and is not too liquid

As a financial manager, what can you do to make sure your company stays solvent and is not too liquid? How do you determine if the company has too much liquidity?

  Determine the required rate of return on common stock

Try to determine the required rate of return on King Farm Corporation’s common stock. The firms beta is 1.82. The rate on a 10 year treasury bond is 3.63 % and the market risk premium is 6.53 percent.

  The initial outlay and annual cash flows

A company wishes to select the best of three possible computers, each expected to meet the University's growing need for computational and storage capacity. The initial outlay and annual cash flows over the life of each computer are shown in the foll..

  Valuation of a constant growth stock

A stock is expected to pay a dividend of $2.25 the end of the year (that is, D1 = $2.25), and it should continue to grow at a constant rate of 9% a year. If its required return is 13%, what is the stock's expected price 4 years from today?

  Depreciation and amortization expense

Sky Corporation recently reported an EBITDA of $ 31.1 million and net income of $9.7 million. The company had $ 6.8 in interest expense, and its average corporate tax rate was 35%. What was its depreciation and amortization expense? Please show your ..

  Price durations and convexities-multiples and ratio

Robert recently graduated from business school and will start working for ACME Mutual Fund Group, Inc. next week. Currently, he is renting an apartment with his girlfriend, Spot, and dog, Rachel. Summarize your results including prices, price duratio..

  As part of its international expansion program acme a us

as part of its international expansion program acme a u.s. multinational enterprise mne is currently in the planning

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