User Account

All Pages

True of changes in cash discount period

Assignment Help Financial Management
Reference no: EM131586312

Which of the following is true of changes in cash discount period?

A. If a firm decreases its cash discount period, the sales are expected to decrease, the bad debts are expected to decrease, and the profit per unit is expected to increase.

B. If a firm increases its cash discount period, the sales are expected to decrease, the bad debts are expected to decrease, and the profit per unit is expected to increase.

C. If a firm decreases its cash discount period, the sales are expected to decrease, the bad debts are expected to increase, and the profit per unit is expected to decrease.

D. If a firm increases its cash discount period, the sales are expected to increase, the bad debts are expected to decrease, and the profit per unit is expected to decrease.

Reference no: EM131586312

Questions Cloud

Tax adjustment to determine aftertax cost of debt : Make the appropriate tax adjustment to determine the aftertax cost of debt.
Compute the price per share of widget stock : Widget Manufacturers Inc. just paid a $3 per share dividend. compute the price per share of Widget stock.
Is it better off selling this loan without recourse : what does it expect to receive if the loan is sold with recourse? Is it better off selling this loan without recourse? Why?
What is amount of cash flow to creditors and stock split : What is the amount of the cash flow to creditors? A stock split has.
True of changes in cash discount period : Which of the following is true of changes in cash discount period?
Common stock value-find the market value of lawrence shares : Common stock value: Variable growth Lawrence Industries’ most recent annual dividend was $1.80 per share (D0 = $1.80), and the firm’s required return is 11%.
What would the new share price be : Andover Inc., had a current share price of $34, and the firm had 5,000,000 shares of stock outstanding. what would the new share price be?
About the current state of the stock market : What does this current CAPE ratio tells you about the current state of the stock market? What does it mean for overall return expectations?
What is net present value of project if required rate : What is the net present value of the project if the required rate of return is 10 percent?

Reviews

Write a Review

Financial Management Questions & Answers

  How much should the compensation be

Robbins Petroleum Company is four years in arrears on cumulative preferred stock dividends. There are 780,000 preferred shares outstanding, and the annual dividend is $4.50 per share. How much should the compensation be?   Based on market value, how ..

  What will be the net cash flow for year

Your company has spent $320,000 on research to develop a new computer game. The firm is planning to spend $52,000 on a machine to produce the new game. Shipping and installation costs of the machine will be capitalized and depreciated; The firm has a..

  Market share is the best indicator of company performance

Market Share is the best indicator of company performance.” Is this a reasonable statement? The business philosophy of a company is a good predictor of profitability.” Is this a reasonable statement?

  Present value of the cash flows expected from project

What is the present value of the cash flows expected from Project X?

  What is the companys expected growth rate

Kahn Inc. has a target capital structure of 50% common equity and 50% debt to fund its $10 billion in operating assets. Furthermore, Kahn Inc. has a WACC of 14%, a before-tax cost of debt of 11%, and a tax rate of 40%. What is the company's expected ..

  Therefore, the claim of this hypothetical weight loss

Therefore, the claim of this hypothetical weight loss programs has strong support from this sample.

  What is the sensitivity of the npv to the price and quantity

What is the sensitivity of the NPV to the price? and quantity? Two parts. Price and quantity. McGilla Golf is evaluating a new golf club. The clubs will sell for $875 per set and have a variable cost of $430 per set. The company has spent $150,000 fo..

  Job with an unusual bonus structure

You have been offered a job with an unusual bonus structure. As long as you stay with the firm, you will get extra 70, 000 every seven years, starting seven years from now. What is the present value of this incentive if you plan to work for the compa..

  What is the yield to maturity for the bonds

On the secondary market, bonds are trading at $925. The bonds have a 2.83% coupon rate paid semiannually and mature in three years. What is the yield to maturity (expressed at an annual rate) for the bonds if an investor buys them at the $925 market ..

  Firm needs to plow back its earnings to fuel growth

Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next seven years, because the firm needs to plow back its earnings to fuel growth. If the required return on this stock is 14.00 percent, what is t..

  How much does marie have to pay

Marie incurred total charges by a hospital of $20,000, and the percentage paid to the provider is 70%. Marie's contract with the PPO specifies her co-pay as 20%. How much does Marie have to pay?

  What is the operating cash flow

Ridiculousness, Inc., has sales of $40,000, costs of $20,000, depreciation expense of $1,500, and interest expense of $800. If the tax rate is 35 percent, what is the operating cash flow, or OCF? (Do not round intermediate calculations.)

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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