Cash conversion cycle-breakeven

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Reference no: EM1349906

A firm has annual operating outlays of $1,800,000 and a cash conversion cycle of 60 days. If the firm currently pays 12 percent for negotiated financing and reduces its cash conversion cycle to 50 days, what is the annual savings?

A firm has interest expense of $145,000, preferred dividends of $25,000, and a tax rate of 40 percent. What is the firm's financial breakeven point?

Asset P has a beta of 0.9. The risk free rate of return is 8 percent, while the return on the market portfolio of assets is 14 percent. What is the asset's required rate of return?

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Reference no: EM1349906

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