If the purchaser of a futures contract fails to meet a margin call,
A) his/her contract will be sold at the current market price.
B) his/her contract will automatically be executed along with immediate delivery.
C) their local broker can decide to waive the call.
D) they will be given a 30-day grace period before payment is required.
Answer: A
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Optimeyes, Inc., has $10 par value Common Stock with 1,000,000 shares authorized, and a value of $7,000,000 before purchasing 3,000 shares of common stock. The resulting number of common shares issued and outstanding is ______.
a. 750,000 shares issued and 697,000 shares outstanding b. 1,000,000 shares issued and 997,000 shares outstanding c. 750,000 shares issued and 747,000 shares outstanding d. 700,000 shares issued and 697,000 shares outstanding e. 700,000 shares issued and 747,000 shares outstanding
Manfred Manufacturing is involved in the production of machine parts. The company uses 600,000 pounds of
steel annually. The current purchasing cost for steel is $3.20 per pound. The carrying cost for inventory is 10 percent of the purchase price. The cost of ordering steel is $800 per order. The company has decided to maintain a safety stock of 15,000 pounds. The delivery time per order is 6 days. The company works 365 days a year. a. Determine the optimal EOQ. b. How many orders will be placed annually? c. What is the average inventory? d. What is the inventory order point? (That is, at what level of inventory should a new order be placed?) e. What is the company's total inventory cost for the year?