A firm with sales of $500,000 has average inventory of $200,000. The industry average for inventory turnover is four times a year. What would be the reduction in inventory if this firm were to achieve a turnover comparable to the industry average?
Answer to relevant QuestionsA firm with annual sales of $8,700,000 increases its inventory turnover from 4.5 to 6.0. How much would the company save annually in interest expense if the cost of carrying the inventory is 10 percent? West Wind, Inc. has 5,000,000 shares of common stock outstanding with a market value of $60 per share. Net income for the coming year is expected to be $6,900,000. What impact will a three-for-one stock split have on the ...The dividend-growth model may be used to value a stock: V= D0 (1 + g) / k - g a. What is the value of a stock if: D0 = $2 k = 10% g = 6% b. What is the value of this stock if the dividend is increased to $3 and the other ...The dividend-growth model, V = D0(1+ g) / k - g , Suggests that an increase in the dividend growth rate will increase the value of a stock. However, an increase in the growth may require an increase in retained earnings and ...A bond has the following features: • Coupon rate of interest: 5 percent • Principal: $1,000 • Term to maturity: 10 years a. What will the holder receive when the bond matures? b. If the current rate of interest on ...
Post your question