Directly shorten the cash conversion cycle

Assignment Help Financial Management
Reference no: EM131354402

Which of the following actions would MOST directly shorten the cash conversion cycle?

Decrease investment in inventory

Decrease operating expenses

Decrease payments received in the first month after the sale.

Increase Sales

2. A supplier offers a firm a 3/15, net 30 discount for early payment on a $2,000 bill. What is the cost of forgoing the trade discount, assuming the financial year has 360 days?

0.003%

1484%

74.2%

37.1%

Reference no: EM131354402

Questions Cloud

Find the present value of the sum of money : Find the present value of the follwing sum of money:
Purchasing power parity holds in the long run : Explain the following statement: “If Purchasing Power Parity holds in the long run, then hedging currency exposure is unnecessary”. What are the risk and return issues relating to SME(small medium enterprise) and personal guarantee.
Contains both secured and unsecured short-term liabilities : Which of the following contains both secured and unsecured short-term liabilities?
Calculate the convexity of the bond : Microsoft has a bond outstanding (symbol: MSFT.GB) with a 4.20% coupon rate and a yield to maturity (continuously compounded) of 1.535%. The bond expires in June, 2019, and pays interest semi-annually. Estimate the current price of the bond. Calculat..
Directly shorten the cash conversion cycle : Which of the following actions would MOST directly shorten the cash conversion cycle? A supplier offers a firm a 3/15, net 30 discount for early payment on a $2,000 bill. What is the cost of forgoing the trade discount, assuming the financial year ha..
Present value of both annuities are equal : An annuity pays 2 at the end of each year for 18 years. Another annuity pays 3 at the end of each year for 9 years. At an effective annual interest rate i, 0
Using call and put options with a strike price : You establish a straddle on Firm G using call and put options with a strike price of $87. The call premium is $9.5 and the put premium is $13. What are the breakeven prices?
The loan off in equal monthly payments over five years : You need to borrow $23,000 to buy a truck. The current loan rate is 7.8% compounded monthly and you want to pay the loan off in equal monthly payments over five years. What is your monthly payment?
Market risk premium-reward-to-risk ratios for stocks : Stock Y has a beta of 1.4 and an expected return of 14.7 percent. Stock Z has a beta of .7 and an expected return of 8.7 percent. If the risk-free rate is 5.2 percent and the market risk premium is 6.2 percent, the reward-to-risk ratios for stocks Y ..

Reviews

Write a Review

Financial Management Questions & Answers

  Bond provisions will make bond more desirable to investors

Which of the following bond provisions will make a bond more desirable to investors, other things being equal?

  A ventures financial objective is to survive

Entrepreneurs provide the financing to individuals who think, reason and act to convert ideas into commercial opportunities and create opportunities. The “time value of money” is an important component of the rent one pays for using someone else’s fi..

  How much does the dealer make or lose if rates do not rise

Suppose a dealer uses the repo market to earn a spread on a matched book. He feels rates will rise over the next 180 days. He borrows collateral one week at a time at 10.00% initially from a money market fund and then she lends the collateral to an S..

  Inflation rate-treasury inflation-protected

In year 1979 the inflation rate was 10%, in USA. How much would be the payment of bond at 5% such as TIP, Treasury inflation-protected, who has a face value of 100,000 and 5% semiannual payment?

  Expected net operating profit after taxes

Dernham Inc. has an expected net operating profit after taxes, EBIT (1-T), of $10,300 million in the coming year. In addition, the firm is expected to have net capital expenditures of $1,545 milllion, and net operating working capital (NOWC) is expec..

  Made a gain or loss as a result

You are the vice president of International Info change, headquartered in Chicago, Illinois. All shareholders of the firm live in the US. Earlier this month, you obtained a loan of 20 million Canadian dollars from a bank in Toronto to finance the con..

  Why the aggregate demand curve shifts

Using the result from your graph to explain why the aggregate demand curve shifts when the Fed purchases Treasury securities.

  Value of foreign stocks in an investment portfolio

Discuss the value of foreign stocks in an investment portfolio. Do you want them? If so, which ones? Do you diversify the classes as you would domestic stock? If so, what classes would you select? Are there any countries you would avoid? What about a..

  Construct an argument in favor of investing

Construct an argument in favor of investing in either the chosen company, or the competitor, with sufficient supportive detail and/or data to make your case.

  Discuss how dollarization might have changed

some economists advised Argentina to dollarize, that is, to eliminate the peso and use the U.S. dollar as its currency. - Discuss how dollarization might have changed.

  Project with for organization-common or preferred stock

In weighted average cost of capital (WACC), what is more expensive to finance a project with for an organization - common stock or preferred stock?

  Expected to remain constant for the life of the bond

You are considering two bonds. Bond A has a 8% annual coupon while Bond B has a 6% annual coupon. Both bonds are valued at the prevailing discount rate of 7% which is expected to remain constant for the life of the bond. Which of the following statem..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd