Which of the following is true? a. If the payment term of n/20 shifted to 5/10, n/20 to start offering customers a cash discount, assuming sales remain to be constant, the day sales outstanding of the firm will likely shorten b. If a firm’s volume of credit sales decreases, then its liquidity ratios will also decrease. c. Relatively more restrictive credit term as comparing to other firms within the same industry will have a potential increase in sales d. High assets turnover is being reflected by inefficiencies present in the management of inventory

Q: If a student's time value of money rate is 24%, then the student would be indifferent between $77 to...

A: Interest rate (r) = 24% Present value (PV) = $77 Period (n) = 1 year

Q: An analyst at Stoneville Corporation estimates that a project has the following after-tax net cash f...

A:   Discounted pay back period: It is the period where the discounted cash flows will be cummulatively...

Q: company is operating at full capacity, fixed assets are excluded in the computation of the amount of...

A: Step 1 Note: (AFN) Additional funds needed. Extra funds needed, or AFN is a term that refers to the ...

Q: t up a savings plan with CIBC whereby he deposits $337 at the end of each quarter for 4 years. Inter...

A: Compund interest =Interest over original principal and interest earned.

Q: Given a mortgage of $48,000 for 15 years with a rate of 11%, what are the total finance charges?

A: Mortgage/ Borrowings:  Borrowings are the loan which is taken by the individual to meet its financia...

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A: Here we will use the formula to calculate the amount to be paid monthly. We will take the period as ...

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A: Answer- a. The effective annual rate for your credit card isFormula for Effective Annual Rate - EAR ...

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A: Given Principal is $7100 Rate is 10.4% Interest $225.

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A: A stream of equal cash flows paid or received periodically is termed as annuity. Annuity is either r...

Q: You have been accepted into college. The college guarantees that your tuition will not increase for ...

A: Present Value can be calculated using PV function in excel   PV (rate, nper, pmt, [Fv], [type]) Rat...

Q: 37) In Walker's taxonomy identification with a company's annual financial results affecting all empl...

A: AS per Walker'sTaxanomy, the company's financial results of the company affects the Team incentives....

Q: SME Balance Sheet 2021 2020 Assets (in millions) Cash 85.960 56.460 Receivables 89.560 80.6...

A:

Q: Bulldogs Inc. offered a one-year loan to a customer client. The instrument is a discounted note with...

A: Discount rate = 15%

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A: For a put option if the Strike price is more than the underlying or current stock price then the put...

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A: We will find out the value of  5% VaR and will check whether it is below -30% or above.

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A: Solution:- Walter’s Model of Dividend is a relevant dividend model, which implies that the dividend ...

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A: Answer -  a. Cash basis of accounting -   Roberta can deduct ($200 x 4) - ($35 x 4) = $800 - $140 = ...

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A: Solution:- When an equal amount is deposited or withdrawn each period, for a number of periods, it i...

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A: WACC is the average rate cost of capital calculated by multiplying the cost of funds by its weight. ...

Q: During 2021, Montoya (age 15) received $2,300 from a corporate bond. He also received $900 interest ...

A: Solution:- Taxable means the income on which the income tax is charged by the tax authorities.

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A: The cost of issuing new securities is known as floatation cost. It includes legal expenses, registra...

Q: 2. Linkline's stock is trading at 55 today and you have determined the outlook for the next year is ...

A: Binomial option pricing method will be used to determine the call price of the stock. Given: S0 = $5...

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A: Call option gives holder a right to buy a stock, but it is not an obligation to buy the stock. Optio...

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A: Stock Number of share Price Investment  Investment Ratio I II III = I*II IV=III/96250 W 725 46 3...

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A: The more is compounding the more is the effective rate and less is compounding than less is the effe...

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A: Because you have asked multiple questions, we will only solve the first question as per policy. Plea...

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A: Receivable turnover is calculated by dividing the net credit sales with the average accounts receiva...

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A: Coupon Rate: It refers to the annual income expected by the bondholder for investing in the issuer'...

Q: Several years ago. cosmetics manufacturer Elizabeth Arden announced its decision to cancel the launc...

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A: Fist we need to use loan amortization formula to calculate monthly payment of loan. PMT =P*r1-1(1+r)...

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A: Loans carry the interest rate so value of loans increases with time and interest.

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A: Retention ratio is calculated as ratio of retained earnings and net income. The retained earning can...

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A: Solution:- When a loan is taken, the lender charges interest on it and in simple interest method, in...

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A: Present Value  The present value is the value of cash flow stream or the fixed lump sum amount at ti...

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A: The payment are done monthly that includes the interest and payment of the loan.

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A: Investment appraisal is the branch of financial management dealing with evaluation and selection of ...

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A: To break even, present value of inflows shall be equal to the initial cost of the project.

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A: The bank discount as per ordinary interest method is calculated with the help of following formula  ...

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.