How much would the firm earn per year

Assignment Help Finance Basics
Reference no: EM13290142

Assume that Biggie Mart, Whose credit card billings total 120 billion per year were to implement a lockbox arrangment that would speed up collection by 2 full days. If biggie mart could earn 3.5% on its marketable securities, how much would the firm earn per year from such an arrangement?

A)230.14 million
B)244.58 million
C)183.50 million
D)316.99 million

 

Reference no: EM13290142

Questions Cloud

Compute the volume of n2 generated : 2NaN3 (s) --> 2Na (s) + 3N2 (g), Calculate the volume of N2 generated at 80.0 C and 823 mmHg by the decomposition of 60.0 g of NaN3
Determine the radius of the plates : A parallel-plate capacitor with 2.0 mm plate spacing has circular plates and holds a charge of +/- 3uC on each plate, What is the radius of the plates
How much energy does battery deliever in 80hour interval : The manufacturer of a 9Volt dry cell flashlight battery saysthat the battery will deliver 20mA for 80 continuous hours. Duringthat time the voltage will drop from 9Volts to 6 Volts. Assume thedrop in the voltage is linear with time.
What is the charge after the teflon is removed : What is the charge before the Teflon is removed? B.)What is the potential difference before the Teflon is removed, What is the charge after the Teflon is removed
How much would the firm earn per year : If biggie mart could earn 3.5% on its marketable securities, how much would the firm earn per year from such an arrangement?
Discusses the background of the organization : Introduction- main contribution - Making changes to the change- something short here because all members contribute in this section.
What annual before tax yield must martin inc earn : What annual before tax yield must martin inc earn on its marketable securities for the system to be beneficial?
Estimate the speed of the snowflakes relative to the car : You are driving south on a highway at 28 (approximately 63 ) in a snowstorm. Estimate the speed of the snowflakes relative to the car
Define how many times faster is reaction : A student sets up two reactions. Reaction 1 uses 0.170 mole/L of reactant, and Reaction 2 uses 0.460 mole/L of reactant. How many times faster is Reaction 2 compared to Reaction 1

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the net cash provided by operating activities

King Company makes a short-term investment in 300 shares of Renfro Corporation's common stock. The stock is purchased for $30 a share plus brokerage fees of $400.

  Determining present value and future value

You have just received a windfall from an investment you made in a friend's business. What is the present value of your windfall? What is the future value of your windfall in three years (on the date of the last payment)?

  What is the rate of return on the company reinvesed funds

Computer Corp reinvests 60% of its earnings in the firm. The sotck sells for $60.00 and teh next dividends will be 1.80 per share. The discount rate is 14%. What is the rate of return on the company's reinvesed funds?

  What is the current value of the botolph equity

What is the expected rate of return on Botolph's equity, after they have issued the new debt? (Hint: Do not make any assumptions about the market risk premium. Do not try to use the CAPM. Use your answer in part C)

  What is your expectd rate of return

Made-It common stock currently sells for $22.50 per share. The company's executive anticipate a constant growth rate of 10 percent and an end-of-year dividend of $2.

  Determine the optimal purchase

Home Furnishings and Decorations Inc. can revamp the loading area of their warehouse to improve the efficiency of loading trucks.

  What is the required return

The next dividend payment by Blue Cheese, Inc., will be $1.52 per share. The dividends are anticipated to maintain a growth rate of 6 percent forever. If the stock currently sells for $28 per share, what is the required return?

  What is a fair price for the investment

The required rate of return is 10%. What is a fair price for the investment - assuming the discount rate and expected cash flows don't change - exactly 3 years from today. (In other words, what would the investment sell for in 3 years?

  Should the new cash discount policy be utilized

Translate this into average inventory (in units and dollars) before and after the change in the cash discount policy. c. Compute the following income statement. d. Should the new cash discount policy be utilized? Briefly comment.

  Determination of wacc

Mullineaux Company has a target capital structure of 60 percent common stock, 5% preferred stock, and 35% debt. Its cost of equity is 14 percent, the cost of preferred stock is 6%.

  What is the present value of an annuity of 3n payments

What is the present value of an annuity of 3n payments of $R in terms of the present value of the annuity of n payments?

  Calculate the present value of growth opportunities

The market consensus is that SuperSmart Corporation has ROE = 16% and a beta of 1.25, and an expected earnings per share (E1) of $3.16. The market believes that Super Smart Corporation plans to maintain indefinitely its retention ratio.

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