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Stewart Company has cost of capital 14%. The following function represents the shortage cost for its net working capital S = 3/x-9 for x >
Stewart Company has cost of capital 14%. The following function represents the shortage cost for its net working capital S = 3/x-9 for x > 9 Here S is the shortage cost in thousands of dollars, and x is the level of the net working capital, also in thousands of dollars. Find the following: (A) The optimum level of net working capital. (B) The financing cost. shortage cost, and total cost at the optimal point
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