What is the maximum inventory of ferilizer

Assignment Help Financial Management
Reference no: EM131070908

The Garden Center sells 90,000 bags of fertilizer annually. The optimal safety stock (initially) is 1,000 bags. Each bag costs the firm $1.50, inventory carrying costs are 20%, and the cost of placing the order with its supplier is $15.

a) What is the economic ordering quantity? ?

b) What is the maximum inventory of ferilizer?

c) What will be firm's average inventory?

d) How often must the company order?

Reference no: EM131070908

Questions Cloud

Evaluate three current or potential legal : Evaluate three current or potential legal and/or regulatory issues apparent in this fact pattern that might impact a public offering. Determine whether Fred's Miracle Cough Syrup is in compliance with government regulations involving public offer..
Existing tutorial system-can pull entity relationship : Ensure that you can analyze existing tutorial system and can pull Entity Relationship Diagrams (ERD) of any proposed system.
Critique the change process initiated : Critique the change process initiated and executed by Gerhard Schulmeyer of Siemens Nixdorf. What do you see as strengths and weaknesses of his efforts?
What was its charge for depreciation and amortization : Talbot Enterprises recently reported an EBITDA of $8 million and net income of $2.4 million. It had $2.0 million of interest expense, and its corporate tax rate was 40%. What was its charge for depreciation and amortization? Explain
What is the maximum inventory of ferilizer : The Garden Center sells 90,000 bags of fertilizer annually. The optimal safety stock (initially) is 1,000 bags. Each bag costs the firm $1.50, inventory carrying costs are 20%, and the cost of placing the order with its supplier is $15. What is the e..
What is the conversion value of the bond : The common stock of Southern Airlines currently sells for $33, and its 8% convertible debentures (issued at par, or $1,000) sell for $850. Each debenture can be converted into 27 shares of common stock at any time before 2025. What is the conversion ..
Unrestricted cash classified within current assets : Companies typically report compensating balances that are required under a loan agreement as unrestricted cash classified within current assets. a. For purposes of financial statement analysis, is this a useful classification? Explain. b. Describe ho..
When valuing stock with the dividend discount model : When valuing stock with the dividend discount model, the present value of future dividends will:
What is the weight of the preferred stock : The Auto Group has 1,000 bonds outstanding that are selling for $840 each. The company also has 8,300 shares of preferred stock at a market price of $65 each. The common stock is priced at $60 a share and there are 29,000 shares outstanding. What is ..

Reviews

Write a Review

Financial Management Questions & Answers

  Compute current price of bonds if percent yield to maturity

Exodus Limousine Company has $1,000 par value bonds outstanding at 13 percent interest. The bonds will mature in 50 years. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calcula..

  Calculate the charge necessary to cover cost

Next year Holyspirit healthcare organization will serve 100 patients in the following manner-30 Medicare Patients who pay $850/diagnosis. 25 Medicaid patients who pay $900 per diagnosis. Calculate the charge necessary to cover ABC’s cost

  Rate of return relative to net amount of money he invested

An employee contributes 9 percent of his salary to his 401(k) plan and the employer matches with 40 percent of the first 6 percent of the employee's salary. The employee earns $90,000 and is in a 28 percent tax bracket. If the employee earns 10 perce..

  Investment opportunity set formed with two securities

Consider an investment opportunity set formed with two securities that are perfectly negatively correlated. The global minimum-variance portfolio has a standard deviation that is always _________.

  Earnings before interest-taxes-depreciation and amortization

Consider a two-year project requiring an investment of - $1,000 at t = 0 and producing earnings before interest, taxes, depreciation, and amortization (EBITDA) of $700 and $800 in years t = 1 and t = 2, respectively. The investment at t = 0, which wi..

  Explain current liabilities

Explain current liabilities A current liability is an obligation that is due within one year of the date of a company balance sheet and will require the use of a current asset of will create another current liability. If a company operating cycle is ..

  What is the annual percentage rate on your account

You are paying an effective annual rate of 13.74 percent on your credit card. The interest is compounded monthly. What is the annual percentage rate on your account? (Enter rate in percents, not in decimals.)

  Research the variables that impact the pricing of options

Research the variables that impact the pricing of options. Focus your energy on comparing the attributes of the two widely accepted models used for option pricing: Black-Scholes and Binomial Models.

  Find the estimated total costs for production level

Total costs were $73,100 when 30,000 units were produced and $96,500 when 36,000 units were produced. Use the high-low method to find the estimated total costs for production level of 32,000 Units. Please show work

  Projected to remain at that level for the foreseeable future

Consider a firm with a debt-equity ratio of 0.40. The required rate of return on this firm’s unlevered equity is 18% and the pre-tax cost of debt is 8%. Sales, which totalled $34 million last year, are projected to remain at that level for the forese..

  Interest rates reflect effect of six different things

1.Demonstrate that bond yields and interest rates reflect the effect of six different things. 2. Explain how each of these concepts influence investors: expected future inflation, interest rate risk, default risk, taxability and lack of liquidity

  Cost of common equity with and without flotation

The Evanec Company's next expected dividend, D1, is $3.15; its growth rate is 4%; and its common stock now sells for $30. New stock (external equity) can be sold to net $28.50 per share. What is Evanec's cost of retained earnings, rs?

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