1. The terms of sale are 4/4, net 35. What is the effective annual rate of interest?
2. A company sells 136,362 units per year. Fixed costs per order are $107 and carrying cost is $22 per unit per year. What is the Economic Order Quantity?
3. ABC's stock closed at $91.96 a share today. The next day, the stock goes ex-dividend. The dividend that is being paid is $2.41 a share. Assume that the tax rate on dividends is 15%. All else remaining constant, what should the opening stock price be next morning?