Answer:
The correct answer to the following question is option D) Eliminate risk through application of ORM( which stands for operational risk management ).
Explanation:
Operational risk management can be defined as the continuous cyclical process which consists of risk decision, implementation of risk controls, risk assessment and risk decision making, which would help in mitigation, avoidance and acceptance of risk.
The four principle included in this are -
1) Accepting risk only when the benefits out weights the cost.
2) Anticipating and managing risk by proper planning.
3) Making right decisions at right time and at right level.
4) Anticipate no unnecessary risk.
Answer: The risk of stock out = 2.94%
Explanation:
Reorder point is calculated as: Lead time*demand per unit time=45*9=405
While the amount on-hand reaches 422 pounds, the manager was reordering lubricant.
During the lead time, Standard Deviation of Demand =Daily S.D*(Lead time)^0.5=3*(9^0.5)=9
Risk of Stock Out=(422-405)/9 S.D=1.89 S.D
From Normal distribution curve 1.89 S.D=0.0294=2.94%
Therefore, the risk of stock out=2.94%
Answer:
intrinsic value of SCI’s shares is $33.28 per share
Explanation:
given data
dividend (D₀) = $1.92 per share
constant rate (g) = 4.00% per year
required return (rs ) = 10.00%
to find out
intrinsic value of SCI’s shares
solution
we know that intrinsic value is here express as
intrinsic value = current dividend × ( 1+ growth rate ) ÷ ( required rate - growth rate ) .............................1
put here value we get
intrinsic value = 
intrinsic value = 33.28
so intrinsic value of SCI’s shares is $33.28 per share
Bachelors degree is the minimum <span />
Answer:
$11,457,522
Explanation:
If the full extended warranty costs are $113 per unit replaced, and 20% of the 506,970 units sold will be replaced, then the total warranty costs are:
total warranty costs = total number of units sold x percentage of units that need warranty replacement x cost per unit replaced
total warranty costs = 506,970 units x 20% x $113 per unit = $11,457,52
