Principles of Finance - EOQ???

[jeffs34]

I see a bunch of people wrote in the feedback to learn EOQ, but when I look it up online it looks like the longest formula on Earth. Any tricks? I'm taking it tomorrow night.

[barcotta]

Well--there's not much time now, but this should help. This is a formula best learned by memorizing an example from a textbook. What you have to know is mostly the formula you'll find under the square root--but you have to know a little about how to get to those numbers if they're not provided.

If nothing else--at least learn the formula in the middle of textbook page 667 (which is overall page 682) at this link. If you're lucky that'll be all you need--but start there and work your way back and see if you get a sense of what's happening. It's all stuff you can reason through and the problems on the test aren't anywhere near the craziness you find through internet searches. Good luck.

[jeffs34]

Thanks! I think I was ok on the EOQ stuff. There was so much on bonds and stocks and cost of capital that I was guessing on.

[categ]

Thanks! I think I was ok on the EOQ stuff. There was so much on bonds and stocks and cost of capital that I was guessing on.

Congrats on your pass. I have to tackle that soon. Not looking forward to it.