What is the cots of credit policy

Assignment Help Finance Basics
Reference no: EM131222357

The firm sell for cash but sometimes extended to credit. Jeda offers 2/10 net 30 term. About 30% of $2 million turnover is sold on credit, 80% of these sale are settled within 10 days, 5% of the remainder becomes bad debts and are written off. What is the cots of credit policy?

Reference no: EM131222357

Questions Cloud

Analyze the given clip from the movie gung ho : Analyze the following clip from the movie Gung Ho: about a Japanese car company that relocates their manufacturing to the U.S. Which cultural variable/taxonomy seems to play the biggest role in this situation?
Expected holding period : Consider a $75,000, 30-year, fixed-rate mortgage with 7.75 percent interest and monthly payments. The lender requires that the borrower pay two points to originate the loan. a) If the expected holding period is 30 years, what is the effective inter..
What discount rate would cause the two alternatives : If 8% is a reasonable discount rate, which option is less costly. - What discount rate would cause the two alternatives to have the same cost in present value terms.
How may it relate to you and your own circumstances : You, as an audience member, are looking to enlarge your own capacity to see, hear and respond to the work of the theatre in all its manifestations. What has the performer intended? What is the piece saying, or trying to say? What is the relationsh..
What is the cots of credit policy : About 30% of $2 million turnover is sold on credit, 80% of these sale are settled within 10 days, 5% of the remainder becomes bad debts and are written off. What is the cots of credit policy?
What is the present value : What is the present value of $12500 to be received 8 years from today? Assume a discount rate of 4.5% compounded annually and round to the nearest $10.
Calculate the 3c companys revenue for the year : Calculate the 3C Company's revenue for the year. - Calculate the company's net income for the year. - Explain why the cash in the bank is so much higher than the net income.
Analyze intersection of social factors affect vulnerability : Analyze the intersection of social, political, and economic factors affecting vulnerability (must address all three factors).
Need to deposit today to reach goal : You want to have $80000 for your daughter's education 18 years from now. If you can earn 3 percent, compounded quarterly, on your savings, how much do you need to deposit today to reach your goal?

Reviews

Write a Review

Finance Basics Questions & Answers

  Principal forms of business organization

What are the three principal forms of business organization? What are the advantages and disadvantages of each?

  Find the future value of the investment

Find the future value of the investment - Find present value and the compound discount of $3009.06 due 8 years from now if money is worth 8.7% compounded annually - Find the future value of the investment.

  What is the best estimate of the current stock price

The R Company's last dividend was $1.20. Its dividend growth rate is expected to be at 35% for 3 years, after which dividends are expected to grow at a constant rate of 5% forever. Its required return (rs) is 15%. What is the best estimate of the ..

  Earnings guidance to investors

What temptations might managers face if they have provided earnings guidance to investors and later find it difficult to meet the expectations that they helped create? Explain.

  To avoid any uncertainty regarding his business financing

to avoid any uncertainty regarding his business financing needs at the time when such needs may arise cyrus brown wants

  Show equations with data and brief description

Show equations with data and brief description. Show and explain the equations that are used. In addition, you are to draw any conclusions on the company you can from this data. Please note that detailed worksheets showing all of the calculations for..

  The bertz merchandising company uses a simulation approach

The Bertz Merchandising Company uses a simulation approach to judge investment projects. Three factors are employed: market demand, in units; price per unit minus cost per unit (on an after-tax basis); and investment required at time 0. These fact..

  Evaluation of bonds yield to maturity

Evaluation of bonds yield to maturity and Kaufman Enterprises has bonds outstanding with a $1000 face value and 10 years left until maturity

  Use the security market line to determine the required rate

Use the security market line to determine the required rate of return for the following firm's stock. The firm has a beta of 0.80, the required return in the market place is 12.50%, and the risk-free rate of return is 3.50%.

  Invest in a new machine that will increase the dividend

Do nothing, which will leave the key financial variables unchanged. Invest in a new machine that will increase the dividend growth rate to 6% and lower the required return to 14%.

  Calculate the price of a zero coupon bond that matures in

calculate the price of a zero coupon bond that matures in 18 years if the market interest rate is 5.20 percent. round

  The money european style option on the stock

What must be the price of a 1-year at-the-money European style option on the stock?

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