Yummy jams company produces a line of jams. yummy's estimated production of jars of jam for the fourth quarter of the year is as follows: october 75,000 november 98,000 december 63,000 each jar requires half a pound of berries. yummy prefers to buy the freshest berries, so its policy is to have just 3 percent of the following month's production needs in ending inventory. on october 1, the company had 1,125 pounds of berries in inventory. yummy's pays $0.60 per pound of berries. it buys all berries on account and typically pays 40 percent of a month's purchases in that month, and the remaining 60 percent the following month. how many pounds of berries will be purchased during the month of november?
a) 49,945.
b) 39,925.
c) 41,950.
d) 48,475.
e) 23,375.

In which of the following situations would the price of a good be most likely to increase? a. a breakthrough in productive technology enables a company to increase its output. b. an increase in production costs results from a rise in wages. c. there's a sudden increase in the number of companies competing to sell the good. d. a drop in demand happens too quickly for producers to decrease production to keep up.

If a firm plans to issue new stock, flotation costs (investment bankers' fees) should not be ignored. there are two approaches to use to account for flotation costs. the first approach is to add the sum of flotation costs for the debt, preferred, and common stock and add them to the initial investment cost. because the investment cost is increased, the project's expected return is reduced so it may not meet the firm's hurdle rate for acceptance of the project. the second approach involves adjusting the cost of common equity as follows: . the difference between the flotation-adjusted cost of equity and the cost of equity calculated without the flotation adjustment represents the flotation cost adjustment. quantitative problem: barton industries expects next year's annual dividend, d1, to be $1.90 and it expects dividends to grow at a constant rate g = 4.3%. the firm's current common stock price, p0, is $22.00. if it needs to issue new common stock, the firm will encounter a 6% flotation cost, f. assume that the cost of equity calculated without the flotation adjustment is 12% and the cost of old common equity is 11.5%. what is the flotation cost adjustment that must be added to its cost of retaine

When used-car dealers signal the quality of a used car with a warranty, a. buyers believe the signal because the cost of a false signal is high b. it is not rational to believe the signal because some used-car dealers are crooked c. the demand for lemons is eliminated d. the price of a lemon rises above the price of a good used car because warranty costs on lemons are greater than warranty costs on good used cars