In 2017, Cumnor Towers had sales of $618 million and cost of goods sold of $522 million.

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In 2017, Cumnor Towers had sales of $618 million and cost of goods sold of $522 million. Its average inventory was $50 million.

a. What was Cumnor's average inventory period?

b. How much would the value of the company increase if Cumnor could permanently reduce its average inventory period by 10 days? Assume that there are no offsetting costs to this change.

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Fundamentals of Corporate Finance

ISBN: 978-1259722615

9th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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Question Posted: Jun 24, 2017 09:00 AM

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In 2017, Cumnor Towers had sales of $618 million and cost of goods sold of $522 million.

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Fundamentals of Corporate Finance

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