1. Circuit City Stores (CC) recently paid a $.27 dividend. The dividend is expected to grow at a 24.10 percent rate. At the current stock price of $9.06, what is the return shareholders are expecting?
27.80% 2.98% 24.13% 24.10%
2. William Beville's computer training school, in Richmond, stocks workbooks with the following characteristics:
Demand D = 20,000 units/year
Ordering cost S = $27/order
Holding cost H = $3/unit/year
a) Calculate the EOQ for the workbooks.
b) What are the annual holding costs for the workbooks?
c) What are the annual ordering costs?