What are annual ordering costs

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1. Circuit City Stores (CC) recently paid a $.27 dividend. The dividend is expected to grow at a 24.10 percent rate. At the current stock price of $9.06, what is the return shareholders are expecting?

27.80% 2.98% 24.13% 24.10%

2. William Beville's computer training school, in Richmond, stocks workbooks with the following characteristics:

Demand D = 20,000 units/year

Ordering cost S = $27/order

Holding cost H = $3/unit/year

a) Calculate the EOQ for the workbooks.

b) What are the annual holding costs for the workbooks?

c) What are the annual ordering costs?

Reference no: EM131341843

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