1. A company sells 151,227 units per year. Fixed costs per order are $156 and carrying cost is $29 per unit per year. If management uses an EOQ model, how many orders will it place per year?
2. ABC Company has annual sales of $125,115 and cost of goods sold of $73,214. The average accounts receivable balance is $41,172. How many days on average does it take the firm to collect its accounts receivable? That is, what is the AR Period? Assume 365 days.
3. The common stock of ABC Industries is valued at $91.44 a share. The company increases their dividend by 7.4 percent annually and expects their next dividend to be $2.24. What is the required rate of return on this stock?