Total asset turnover will increase

Assignment Help Financial Management

Reference no: EM131303930

Your firm reduces its days in receivables from 87 to 67, which generates $3.4 million of new investment funds. Growth rate in new equity will increase because: (please discuss the reason for your choice)

1. Total asset turnover will increase

2. Investment income will increase

3. Both A and B

Reference no: EM131303930

Questions Cloud

Calculate the grand potential for the nanotube surface : Calculate the grand potential ?(T,A,µ) for the nanotube surface. (Express e-?/kT as a summation over all of the ni's. Hence prove the relation ? = AkT In (1 - e-(ε + µ) / kT).)

Why does fedex so prominently display a news area : Comment on how the website's overall design reflects the services the site promotes.- Why does FedEx so prominently display a "News" area on its website?

Analyze effect of an open market sale of treasury security : Use a demand and supply graph for the federal funds market to analyze the effect of an open market sale of Treasury securities on the equilibrium federal funds rate.

How could channel stuffing at coca cola affect : How could channel stuffing at Coca-Cola affect its relationships with channel members such as bottlers?- In what ways could channel stuffing impact Coke's own customer-service standards?

Total asset turnover will increase : Your firm reduces its days in receivables from 87 to 67, which generates $3.4 million of new investment funds. Growth rate in new equity will increase because: Total asset turnover will increase. Investment income will increase.

What value is added to a product by retailers : What value is added to a product by retailers? What value is added by retailers for producers and for ultimate consumers?

Find the real rate of return on the investment : Find the real rate of return on the investment using the exact method: A bank account that yields a nominal annual rate of 1.6%, if a market basket of consumer items rises in price from $800 to $825.

What is the dividend yield and capital gains yield : ABC Corporation paid $2 per share dividend last year. The company is a supernormal growth and its earnings are expected to grow at a 25 percent rate for the next 3 years, 15% rate over the following 2 years and 5 percent thereafter. What are the pric..

Identify the inputs and output and their values : A company produces 78,000 plastic bags each month using labor and an equipment. The equipment will remain productive for three years with a total cost of $6,000 for three years. The annual labor cost is $7,000. Identify the inputs and output and thei..

User Account

All Pages