XYZ used an investment bank to do IPO. In IPO, XYZ sold 1 million shares at $69.46 each. The investment bank charged 7% spread. At the end of the 1st day of trading, XYZ stock price closed at $71.05. Calculate the total cost of IPO. That is, what is the sum of direct and indirect cost?
XYZ is a retailer and sells 183,000 units per year. It purchases from a single supplier. Fixed costs per order are $821 and carrying cost is $9 per unit per year. In economic order quantity model, what would be the lowest total inventory cost? That is, the lowest sum of total carrying cost and total shortage cost.
Get Answers For Free
Most questions answered within 1 hours.