The bathroom section of a large department store sells 18,233 specialty bath towels per year. The unit purchase cost of a towel from the store’ supplier is $2.40 per towel. The cost of placing an order to the supplier is $14.00 per order. The holding cost is $0.60 per towel per year. Assume that the Economic Order Quantity (EOQ) Model is appropriate here, and that EOQ = 922.43.
a. What is the total annual setup (i. e., order) cost?

Mikkelson corporation's stock had a required return of 12.50% last year, when the risk-free rate was 3% and the market risk premium was 4.75%. then an increase in investor risk aversion caused the market risk premium to rise by 2%. the risk-free rate and the firm's beta remain unchanged. what is the company's new required rate of return? (hint: first calculate the beta, then find the required return.) do not round your intermediate calculations.