Decrease the credit period

Assignment Help Financial Management
Reference no: EM13950029

Which of the following will decrease the credit period? I. Increase in the buyer's inventory period II. Increase in the buyer's operating cycle III. Decrease in the buyer's inventory cycle IV. Decrease in the buyer's operating cycle

Reference no: EM13950029

Questions Cloud

What is the company total book value of debt : Jiminy's Cricket Farm issued a 30-year, 7 percent semi-annual bond 5 years ago. The bond currently sells for 81 percent of its face value. The book value of the debt issue is $23 million. The company's tax rate is 33 percent. What is the company's to..
Developed a new home entertainment product real sound units : Wilson Sound Inc. has developed a new home entertainment product Real Sound Units which enhances the sound of DVDs for high-end home entertainment systems. Wilson has an 18% cost of capital and faces an average tax rate of 30% and a marginal tax rate..
Firm is considering developing an apartment complex : Your firm is considering developing an apartment complex. The firm owns land that could be used for the project; it was bought last year for $500,000. Real estate has gone up sharply in the last year: the land could be sold today for $625,000. Fixed ..
Receive sufficient funds to purchase all the equipment : Importers/Exporters Inc. wants to underwrite a stock issue for the purchase of $21 million of new equipment. Management estimates the issue will cost the firm $320,000 for accounting, legal, and other costs. The underwriting spread is 7.5% and the is..
Decrease the credit period : Which of the following will decrease the credit period? I. Increase in the buyer's inventory period II. Increase in the buyer's operating cycle III. Decrease in the buyer's inventory cycle IV. Decrease in the buyer's operating cycle
What is the cost of equity for a firm that has a beta : What is the cost of equity for a firm that has a beta of 0.98, a dividend growth rate of 3.2%, a stock price of $33/share, and an expected annual dividend of $1.06 per share next year? The market rate of return is 11.2% and the risk-free rate is 3.7%..
Nalyzing a project with the cash flows : Blue water system is analyzing a project with the following cash flows. use the reinvestment approach and calculate the modified internal rate or return if the discount rate is 15%?
How much of the first payment is interest : A person will buy a $250,000 home paying 20% down and financing the rest at the annual interest rate of 7% compounded monthly. He will make monthly payments for 30 years to pay off the loan. Find the monthly payment. How much of the first payment is ..
What is the weighted average cost of capital : Delta Lighting has 30,000 shares of common stock outstanding at a market price of $15 a share. This stock was originally issued at $31 per share. The firm also has a bond issue outstanding with a total face value of $280,000 which is selling for 86 p..

Reviews

Write a Review

Financial Management Questions & Answers

  Common stock dividends have been growing at annual rate

General Cereal common stock dividends have been growing at an annual rate of 7 percent per year over the past 10 years. Current dividends are$1.70 per share. What is the current value of a share of this stock to an investor who requires a 12 percent ..

  Transactional and transformational styles of leadership

Which is true about the transactional and transformational styles of leadership?

  The company pay in federal income taxes for the year

A mail-order computer company sells personal computers and peripherals. The company leased showroom space and a warehouse for $20,000 a year and installed $290,000 worth of inventory-checking and packaging equipment. How much will the company pay in ..

  Customers of a fast food chain order a hamburger

A total of 60% of the customers of a fast food chain order a hamburger, French fries, and a drink. If a random sample of 15 cash register receipts is selected, what is the probability that 10 or more will show that the above three food items were ord..

  Evaluate the financial environment at genesis energy

As the lead consultant for Sensible Essentials, do the following: Describe and evaluate the financial environment at Genesis Energy by using ratio analysis of the company. What would be the least risky avenue for them to get their product/service to ..

  Considering expanding its wine-making operations

Lakeside Grapes is considering expanding its wine-making operations. They would need new equipment that costs $390,000 that would be depreciated on a straight-line basis to a zero balance over the 5-year life of the project. The estimated salvage val..

  Made at an effective interest rate

Loan of 12500 is made at an effective interest rate of 8.5%. Payments are made at the end of each interest period. Each payment equals twice the interest due until the borrower pays off the outstanding debt with a final payment of at most, 1800. Find..

  What do you believe is a fair market price for the stock

Under these circumstances, would you purchase this stock? What do you believe is a fair market price for the stock?

  Assume no dividend-calculate total return on your investment

You purchased one of AAA Corp.’s 9%, 15-year convertible bonds at its $1,000 par value a year ago when the company’s common stock was selling for $25. Similar bonds without a conversion feature returned 10% at the time. You exercise the conversion fe..

  What circumstances or conditions could a high current ratio

Generally, a high current ratio is an indicator of good liquidity. Under what circumstances or conditions could a high current ratio be an indicator of problems with the company's current assets?

  Prepare a cash-flow budget and a profit budget

Prepare a cash-flow budget and a profit budget for Gringotts Ltd on the basis of Strategy 1. The budgets should be split into quarterly intervals showing cash-flow and profit forecasts for each individual quarter.

  What are the firms discretionary financing needs

Harrison Electronics, Inc. operates a chain of electrical lighting and fixture distribution centers throughout northern Arizona. The firm is anticipating expansion of its sales in the coming year as a result of recent population growth trends. What a..

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