Lealos inc is considering a change in its cash-only sales

Assignment Help Finance Basics
Reference no: EM13363955

Lealos, Inc., is considering a change in its cash-only sales policy. The new terms of sale would be net one month. Based on the following information, evaluate if Lealos should proceed or not. Describe the buildup of receivables in this case. The required return is .95 percent per month.

Current Policy New Policy
Price Per Unit $720 $720
Cost Per Unit $495 $495
Unit Sales per month 1,100 1,140

Reference no: EM13363955

Questions Cloud

1 explain what was the markets reaction to the : 1. explain what was the markets reaction to the self-reported earnings announcement?2. briefly examine the reported
Question 1 briefly describe the meaning of the term : question 1 briefly describe the meaning of the term mechatronics both in terms of the systems approach and the
United technologies has pound50 million in excess cash and : united technologies has pound50 million in excess cash and no debt. the firm expects to generate additional free cash
Here is another assignment but this time just 4 questionsit : here is another assignment but this time just 4 questionsit is about verizon inc. corporationquestions1 evaluate the
Lealos inc is considering a change in its cash-only sales : lealos inc. is considering a change in its cash-only sales policy. the new terms of sale would be net one month. based
Jersey ts is preparing to sell new shares of stock to the : jersey ts is preparing to sell new shares of stock to the general public. as part of this process the firm just filed
The project requires you to gather information compile data : the project requires you to gather information compile data and examine a how the debt ceiling will impact the
The managers of a firm are asked to consider two possible : the managers of a firm are asked to consider two possible new product lines for the firm. project 1 is quite risky and
A recent article in fortune magazine listed the following : a recent article in fortune magazine listed the following firms among the top ten most admired companies in the united

Reviews

Write a Review

Finance Basics Questions & Answers

  Compare the market capitalization to revenue ratio

American Airlines had a market capitalization of $2.3 billion, debt of $14.3 billion, and cash of $3.1 billion. American Airlines had revenues of $18.9 billion.

  What is the total amount of food that cafeteria should have

what is the total amount of food that a cafeteria should have on hand to be 95percent confident that it will not run out of food when feeding 50 college students.

  Profitable replace the year old machine

Is it profitable to replace the year-old machine?

  Find a new possible investment item for lockheed martin

find a new possible investment item for lockheed martin what problems are you going to have in estimating the cash flow

  Draw profit diagram for yourself and your counterparty

Suppose that you write a put contract with a strike price of $40 and an expiration date in 3 months. The current stock price is $41 and the contract is on 100 shares.

  Determine the net cost of the call premium

Buchanan Corporation is refunding $12 million worth of 10% debt. The corporation's tax rate is 35%. The call premium is 9 percent.

  What is the investments internal rate of return

Your firm is considering an investment that will cost $920,000 today. the investment will produce cash flows of $450,000 in year 1, $270,000 in years 2 through 4, and $200,000 in year 5.

  What is jowers cost of capital

If the cost of common equity for the firm is 20.2%, the cost of preferred stock is 11.7% and the before tax cost of debt is 10.9 %, what is Jowers cost of capital? The firm's tax rate is 34%. Round to 3 decimal places.

  What are some of the abcs for successful recruitment

What are some of the ABCs for successful recruitment? Pick two and demonstrate why you picked them and tell why they are important for successful recruiting.

  What is the unpaid balance after the first payment

Your monthly payments are $62.28. If $22.50 of the first payment goes toward interest and $39.78 of the first payment goes toward the principal, what is the unpaid balance after the first payment?

  Explain basic micro loan program

Discuss and explain the advantages and disadvantages of each of following programs in terms of complexity of application and protection in the event of a default:

  What will the price of this bond be

A $1,000 bond has a coupon rate of 10 percent and matures after 8 years. Interest rates are currently 7%.

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