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1.2 REQUIRED Calculate the EOQ from the information provided below. (5) INFORMATION The annual sales of Siddle Limited is 600 000 units. The purchase price
1.2 REQUIRED Calculate the EOQ from the information provided below. (5) INFORMATION The annual sales of Siddle Limited is 600 000 units. The purchase price is R2 per unit. The carrying cost of inventory amounts to 25% of the purchase price. The ordering cost is R20 per order. 1.3 In order to calculate an entity's weighted average cost of capital (WACC) financial weights have to be set for each component in the firm's capital structure. The weights may be calculated as book or market value, and as historic or target figures. Explain what is meant by these four types of weights. (8)
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