Homework Answers
Suppose if a business, is having a very good reputation in the market, and the cash discount being offered to that business is higher than the interest he would be paying for loaning the amount, then that would result in net positive cash flow. Business like Apple, or Google, should be the ones who are in a position to do that, because of the high ratings they have, they are generally offered money at low-interest rates and hence can take advantage of the cash discounts they can get.
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Under what circumstances would it be advisable to borrow money to take a cash discount? Give...
Neveready Flashlights Inc. needs $350,000 to take a cash discount of 3/18, net 72. A banker...
Neveready Flashlights Inc. needs $350,000 to take a cash discount of 3/18, net 72. A banker wil dan the money for 54 days at an interest cost of $14,500 a. What is the effective rate on the bank loan? Use a 360-day year. Do not round Intermediate calculations. Input your answer as a percent rounded to 2 decimal places) Effective rate of interest b. How much would it cost in percentage terms) f the firm did not take the cash...
a. Under what circumstances would you (as an investor) prefer to receive cash dividends rather than...
a. Under what circumstances would you (as an investor) prefer to receive cash dividends rather than stock dividends? If the company can reinvest its retained earnings at a higher ROI than I could earn on the money paid to me in dividends, I would prefer that the company pay a cash dividend. If I needed current income from my investment, I would want Cash dividends. b. Under what circumstances would you prefer stock dividends to cash dividends? If I needed...
Harper Engine Company needs $634,000 to take a cash discount of 2.50/20, net 120. A banker...
Harper Engine Company needs $634,000 to take a cash discount of 2.50/20, net 120. A banker will loan the money for 100 days at an interest cost of $14,700. a. What is the effective rate on the bank loan? (Use a 360-day year. Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Effective rate of interest b. How much would it cost (in percentage terms) if Harper did not take the cash discount...
Harper Engine Company needs $638,000 to take a cash discount of 1.50/15, net 65. A banker...
Harper Engine Company needs $638,000 to take a cash discount of 1.50/15, net 65. A banker will loan the money for 50 days at an interest cost of $16,800. a. What is the effective rate on the bank loan? (Use a 360-day year. Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Effective rate of interest L % b. How much would it cost (in percentage terms) if Harper did not take the...
1.Under what circumstances would a recommendation report be written directly?give example 2. What heading guideline should...
1.Under what circumstances would a recommendation report be written directly?give example 2. What heading guideline should you follow when writing a report?
A company surveyed 1000 US adults and asked them under what circumstances they would give personal...
A company surveyed 1000 US adults and asked them under what circumstances they would give personal information to a company. Twenty-Nine (29) percent said they would never give personal data to a company. a. Construct an 87% confidence interval for population proportion of customers who would never give personal data to a company b. Based on (b), can you conclude that the true proportion is different than 16%? Explain why
1. If you were in a position to run our economy, what steps would you take...
1. If you were in a position to run our economy, what steps would you take to raise our rate of economic growth? 2. Give an example of an opportunity cost for an individual an a nation. 3. Would it be harder for a nation to attain full employment or full production? Explain. 4. What is the opportunity cost you incurred by going to college? 5. Why is scarcity central to economics? 6. Can you think of any decisions you...
Question6. suppose, instead of being able to pay cash for his MBA, Ben must borrow the...
Question6. suppose, instead of being able to pay cash for his
MBA, Ben must borrow the money. The current borrowing rate is 5.4
percent. How would this affect his decision?
THE MBA DECISION Ben Bates graduated from college six years ago with a finance undergraduate degree. Although he is satisfied with his current job, his goal is to become an investment banker. He feels that an MBA degree would allow him to achieve this goal. After examining schools, he has...
3. What discount rate would you use to discount the Brazilian Real cash flows from the...
3. What discount rate would you use to discount the Brazilian Real cash flows from the project? Does this adequately capture the risk of investing in Brazil? 4. What is the present value of the cheap financing being provided by the Japanese equipment manufacturer? How, if at all does this change the valuation of the project? 3. Note the value of the cheap financing should be added to the Br R value that you calculated above. For this calculation you...
Your company provides you with a car. You are told only to drive in Dade and...
Your company provides you with a car. You are told only to drive in Dade and Broward and only to use the car for business purposes. One weekend your family is going to the Keys. You get in your personal car and it won’t start so you take the company car to the Keys, which is in Monroe, for the weekend. When you return to work on Monday your boss calls you in his office and asks you why you...
Neveready Flashlights Inc. needs $350,000 to take a cash discount of 3/18, net 72. A banker wil dan the money for 54 days at an interest cost of $14,500 a. What is the effective rate on the bank loan? Use a 360-day year. Do not round Intermediate calculations. Input your answer as a percent rounded to 2 decimal places) Effective rate of interest b. How much would it cost in percentage terms) f the firm did not take the cash...
Harper Engine Company needs $634,000 to take a cash discount of 2.50/20, net 120. A banker will loan the money for 100 days at an interest cost of $14,700. a. What is the effective rate on the bank loan? (Use a 360-day year. Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Effective rate of interest b. How much would it cost (in percentage terms) if Harper did not take the cash discount...
Harper Engine Company needs $638,000 to take a cash discount of 1.50/15, net 65. A banker will loan the money for 50 days at an interest cost of $16,800. a. What is the effective rate on the bank loan? (Use a 360-day year. Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Effective rate of interest L % b. How much would it cost (in percentage terms) if Harper did not take the...
Question6. suppose, instead of being able to pay cash for his
MBA, Ben must borrow the money. The current borrowing rate is 5.4
percent. How would this affect his decision?
THE MBA DECISION Ben Bates graduated from college six years ago with a finance undergraduate degree. Although he is satisfied with his current job, his goal is to become an investment banker. He feels that an MBA degree would allow him to achieve this goal. After examining schools, he has...
3. What discount rate would you use to discount the Brazilian Real cash flows from the project? Does this adequately capture the risk of investing in Brazil? 4. What is the present value of the cheap financing being provided by the Japanese equipment manufacturer? How, if at all does this change the valuation of the project? 3. Note the value of the cheap financing should be added to the Br R value that you calculated above. For this calculation you...
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