Determining the economic order quantity


Jensen Autos, one of the largest car dealers in Eau Claire, sells about 700 vehicles a year. The cost of placing an order with their supplier is $1,100, and the inventory carrying costs are $120 for each car. Most of their sales are in late fall of each year.

What is the number of cars per order?

How many orders will the dealer need to place this year?

Disadvantages of going public include

Benefits from shelf registration include

Advantages of private placements include:

Private equity firms improve the performance of firms in which they invest by:

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Finance Basics: Determining the economic order quantity
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