Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question
Use the following data to answer questions below.
Month
Jan
Feb
Mar
Apr
May
Jun
July
Aug
Sales ($ K)
53
40
70
60
55
85
42
35
a. What will be the firm's collections in May, if the firm gives it customers the following number of days to pay:
Number of days of credit
Collections ($ K)
0
30
90
15
45
75
b. Firm gives its customers 2 months credit. In March, the firm received a cash advance of $20K from one of its customers. Sales to this customer (which are included in the sales figures below) are $12K, $6K, and $2K in April, May, and June. Fill in the following table with expected A/R and Collections ($ '000) for March, April, May, June, July, and August:
March
April
June
Sales
A/R @ month end
Collections
c. Firm currently gives its customers 90 days credit. It has notified its customers that it plans to reduce its credit period. It expects to make the transition after April (end of April A/R = 90 days of sales). By the end of May, it hopes to cut its A/R to 60 days of sales, and further cut it to 30 days of sales by the end of June. Fill in the following table:
Jennifer wants to buy some furniture for her new apartment. A shop offered credit at an APR of 16 percent with a maximum term of four years.
What would be the effective cost of the bank loan? Should Lancaster use bank debt or additional trade credit? Explain.
An analyst expects Aquinas Research Inc. to pay its first dividend of $0.50 per share five years from today. She expects future dividends to then grow indefinitely at a constant rate of 8.5% per year. Assume the risk-free rate is 3.9%, market risk pr..
If this transaction reduces the risk of his portfolio, what is the minimum possible correlation between the stock he shorted and his original portfolio?
Rank the following potential mergers in terms of most likely to least likely to be scrutinized by the Department of Justice’s Guidelines for horizontal mergers?
Calculate the operating cash flows of the project if the firm’s tax bracket is 40%.
A resort hotel has total annual sales revenue of $1,000,000, variable costs of $350,000, and fixed costs of $570,000. The fixed costs include $80,000 a year for land rental lease. Calculate the hotel’s breakeven point. If the owners had an equity in..
If the tax rate is 35 percent, what is the aftertax cost of debt? What is Advance's pretax cost of debt?
Assuming copies were made during the year, 2,757,250 for sales and 2,984,500 for administration,calculate the copy department costs allocated to sales.
Calculate the yearly change in the foreign reserves of the central bank. Would you expect this process to be smooth over time? Why?
You observe that the yield on one-year U.S. Treasury debt is lower than the yield on five-year U.S. Treasury debt.
Explain the no arbitrage approach to valuing options with the Binomial options pricing model.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd