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!
The Blawnox Company is concerned about its bad-debt losses and the length of time required to collect receivables. Current sales are $43.8 million per year. Bad-debt losses are currently 3.5 percent of sales, and the average collection period is 68 days (credit terms are "net 30"). One plan under consideration is to tighten credit standards by refusing to grant additional credit to any customers who are more than 15 days past due on their payments. This change in credit policy is expected to reduce sales by 10 percent but also reduce bad-debt losses to 2.5 percent of sales and reduce the average collection period to 40 days. The firm's variable cost ratio is 70 percent, and its required pretax rate of return on current assets investments is 18 percent. The company also expects its inventory investment to decrease by $1 million due to the anticipated decrease in sales. Determine the net effect of this plan on Blawnox's pretax profits.
TwitterMe, Inc., is a new company and currently has negative earnings. The company’s sales are $2,500,000 and there are 210,000 shares outstanding. If the benchmark price-sales ratio for the company is 5.7, how much will you pay for the stock? If the..
How much do you need to invest into an account today with 7% monthly compounded interest in order to have $500,000 fifteen years from now? You are the owner of the New Orleans Saints. Let's say you take out a loan for $250 million to build new luxury..
You have been asked to estimate the market value of an apartment complex that is producing annual net operating income of $68,000. Four highly similar and competitive apartment properties within two blocks of the subject property have sold in the pas..
Explain the concept of capital flight in the context of a fixed exchange rate regime. Make sure to include in the discussion what economic conditions would permit a country to establish such regime in the first place. Also, provide examples and reaso..
Is there really any difference between the different ways one can mitigate exchange rate risk? If so, is one form of exchange rate risk mitigation superior to another?
How might a financial intermediary or corporation benefit with a "fixed rate" versus a "floating rate" swap?
Although Statement No. 34 requires that infrastructure assets be accounted for similarly to other capital assets, it allows for a major exception with regard to depreciation. What is that exception? A government’s interest expenditure, as reported in..
The ABC Company has made the following monthly estimates of cash receipts and cash disbursements when preparing cash budgets for the next twelve months. ABC has beginning cash on hand of $20,000 and wants to maintain this minimum cash level throughou..
The interest on some municipal bonds is tax free, in contrast to the interest on corporate bonds. If the current annual interest rates on otherwise similar (i.e., maturity, credit risk, liquidity) municipal and corporate bonds are 1.48% and 1.80%, re..
Your company has been approached to bid on a contract to sell 5,200 voice recognition (VR) computer keyboards a year for four years. Due to technological improvements, beyond that time they will be outdated and no sales will be possible.
About the Financial Leases
The Easton manufacturing Company is looking to replace its conveyor belt system. A new system will cost $345,000, and will result in cost savings of $220,000 in the first year, followed by savings of $100,000 per year over the following 3 years. If t..
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