None A company carries an averageannual inventory of $3 million if itestimates the cost of capital is 10%so much costs are 7% and risk callsare 6%. What does it cost per yearto carry this inventory?

Step 1: Introduction to the Annual Inventory"Annual inventory" is a term related to business…

Answered: A company carries an average annual…

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter7: Corporate Valuation And Stock Valuation

Section: Chapter Questions

Problem 1P: Ogier Incorporated currently has $800 million in sales, which are projected to grow by 10% in Year 1...

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What does it cost per year to carry this inventory?
What does it cost per year to carry this inventory? (financial accounting)
A company carries an average annual inventory of $4.3 million if it estimates the cost of capital is 13% so much costs are 9% and risk calls are 8%. What does it cost per year to carry this inventory?
A company carries an average annual inventory of $4.3 million if it estimates the cost of capital is 13% so much costs are 9% and risk calls are 8%. What does it cost per year to carry this inventory? Financial Accounting
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General Accounting
If a firm's sales are $1,680,000 and it costs 9 percent to carry current assets, what is the potential savings if management can increase inventory turnover from 2 to 4 times a year and increase receivables turnover from 5.0 to 6.5 times a year? Round your answer to the nearest dollar. $
If the annual cost of goods sold is $30,000,000 and the average inventory is$5,000,000,a. What is the inventory turns ratio?b. What would be the reduction in average inventory if, through better materialsmanagement, inventory turns were increased to 10 times per year?c. If the cost of carrying inventory is 25% of the average inventory, what is the annual savings?
Suppose that your company sells a product for which the annual demand is 10,000 units. Holding costs are $1.00 per unit per year, and setup costs are $200 per order. What is the minimum total stock administration cost for the product?
Ogier Incorporated currently has $800 million in sales, which are projected to grow by 10% in Year 1 and by 5% in Year 2. Its operating profitability ratio (OP) is 10%, and its capital requirement ratio (CR) is 80%?a. What are the projected sales in Years 1 and 2?b. What are the projected amounts of net operating profit after taxes (NOPAT) for Years 1 and 2? c. What are the projected amounts of total net operating capital (OpCap) for Years 1 and 2?d. What is the projected FCF for Year 2?
A firm with annual sales of $7,600,000 increases its inventory turnover from 4.0 to 4.5. How much would the company save annually in interest expense if the cost of carrying the inventory is 10 percent? Round your answer to the nearest dollar. $
Assuming costs vary with sales and a 20 percent increase in sales is projected, create the pro forma income statement. Create a pro forma Balance Sheet. All items will vary with sales. What is the plug variable in order for this to balance? Suppose no dividend is planned to be issued next year. What is the plug variable?

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A company carries an average annual inventory of $3 million if it estimates the cost of capital is 10% so much costs are 7% and risk calls are 6%. What does it cost per year to carry this inventory?