What Is the Optimal Order Quantity

question 79

Multiple Choice

What is the optimal order quantity?

• A)100
• B)115.47
• C)200
• D)500

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Definitions:

Optimal Capital Structure

The ideal mix of debt and equity financing that minimizes a company's cost of capital and maximizes its value and stock price.

WACC

Weighted Average Cost of Capital, a calculation of a firm's cost of capital that weighs each category of capital proportionately.

EPS

EPS stands for Earnings Per Share, a key financial indicator that divides net earnings available to shareholders by the average outstanding shares, illustrating the company's profit on a per-share basis.

Common Share Price

The market price at which a common share of a company is traded on the stock exchange.