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

  What is the value of a put option with strike price

IBM stock currently sells for 44 dollars per share. Over 5 months the price will either go up by 13.5 percent or down by -6.5 percent. The risk-free rate of interest is 7.0 percent continuously compounded. What is the value of a put option with strik..

  How much gain would he have to pay tax on

Tom and Mary Taylor acquired their personal residence 20 years ago for $150,000. Tom furnished all the consideration for the property. Assume Mary dies this year when the house is worth $310,000. how much gain would he have to pay tax on?

  What is the present value of this assuming the time value

Mr big Bucks says he will pay you $60,000.00 now for annual payments of $10,000 that you are expected to receive for a legal settlement over the next 10 years. What is the present value of this assuming the time value of the money at 8%?

  What is the NPV and payback period of investment

Riggs, Inc. management is planning to spend $650,000 on a new marketing campaign. They estimate this will result in additional cash flows of $325,000 over the next three years. If the cost of capital is 17.5 percent, what is the NPV of this investmen..

  Major sources of short-term financing

If you have your own business how would you develop a short-term financing plan that meets your need for cash? What are some of the major sources of short-term financing you would consider?

  Calculate the HPR and profit amount on your equity position

On March 20, 2012 you bought 1,000 shares of Starwood Hotels & Resorts Worldwide Inc. (HOT) at $14.00 on 50% margin. The margin loan carries a 8% annual interest rate, paid every 3 months from the day of the purchase. You sold the stock on September ..

  Arithmetic average return on crash-n-burns stock

You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 17 percent, –4 percent, 20 percent, 12 percent, and 10 percent. What was the arithmetic average return on Crash-n-Burn’s stock over this five-year period..

  Is it ethical to discontinue the cash dividend

Mark Remington, the president and CEO of Earth Systems, Inc., a waste management firm, was recently hospitalized, suffering from exhaustion and a heart ailment. Mr. Jackson’s suggestion ethical? Explain. Is it ethical to discontinue the cash dividend..

  All secondary markets are broker markets

All secondary markets are broker markets. All stock transactions are secondary market transactions. All Dutch auction sales are secondary market transactions. All stock trades between existing shareholders are secondary market transactions.

  Average tax rate that firm pays or marginal tax rate firm

Regarding income taxes, which do you think is more important (and why)-- the average tax rate that a firm pays or the marginal tax rate the firm is paying?

  Determine the amount of safety stock and Reorder point

Determine the following Amount of safety stock, in units, Average inventory and annual carrying costs and Reorder point.

  How is it related to its yield to maturity

A Trea sury bond pays a 4.250 percent coupon rate.- What is the coupon payment per $1,000 face value?- How is this related to its yield to maturity?

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