52. ABC Company buys P8,000,000 of materials net of discount on terms 3/5,net 60; and it currently pays after 5 days and takes discounts. It plans to expand,which will require additional financing. If it decides to forego discounts, whatwould be the nominal cost of that credit? [nearest % 2 decimal places]53. ABC Corporation produces Product X. It turns out 1,500 units a day at a costof P6 per unit for direct materials, direct labor and factory overhead. It takes thefirm 22 days to convert raw materials into a battery. ABC allows its customers 40days in which to pay for Product X, and the firm generally pays its suppliers in 30days. By what amount could ABC reduce its working capital financial needs if itwas able to stretch its payables deferral period to 35 days? [nearest peso]

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52. ABC Company buys P8,000,000 of materials net of discount on terms 3/5, net 60; and it currently pays after 5 days and takes discounts. It plans to expand, which will require additional financing. If it decides to forego discounts, what would be the nominal cost of that credit? [nearest % 2 decimal places]

52. ABC Company buys P8,000,000 of materials net of discount on terms 3/5, net 60; and it currently pays after 5 days and takes discounts. It plans to expand, which will require additional financing. If it decides to forego discounts, what would be the nominal cost of that credit? [nearest % 2 decimal places]

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

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Concept explainers

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.

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52. ABC Company buys P8,000,000 of materials net of discount on terms 3/5,
net 60; and it currently pays after 5 days and takes discounts. It plans to expand,
which will require additional financing. If it decides to forego discounts, what
would be the nominal cost of that credit? [nearest % 2 decimal places]
53. ABC Corporation produces Product X. It turns out 1,500 units a day at a cost
of P6 per unit for direct materials, direct labor and factory overhead. It takes the
firm 22 days to convert raw materials into a battery. ABC allows its customers 40
days in which to pay for Product X, and the firm generally pays its suppliers in 30
days. By what amount could ABC reduce its working capital financial needs if it
was able to stretch its payables deferral period to 35 days? [nearest peso]

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P15–15 Cost of commercial paper Commercial paper is usually sold at a discount. Fan Corporation has just sold an issue of 90-day commercial paper with a face value of $1 million. The firm has received initial proceeds of $978,000. (Note: Assume a 365-day year.) What effective annual rate will the firm pay for financing with commercial paper, assuming it is rolled over every 90 days throughout the year? If a brokerage fee of $9,612 was paid from the initial proceeds to an investment banker for selling the issue, what effective annual rate will the firm pay, assuming the paper is rolled over every 90 days throughout the year?
es Little Kimi Clothiers can borrow from its bank at 20 percent to take a cash discount. The terms of the cash discount are 3/25 net 85. a. Compute the cost of not taking the cash discount. (Use 365 days in a year. Do not round the intermediate calculations. Round the final answer to 2 decimal places.) Cost of not taking a cash discount b. Should the firm borrow the funds? % 00 Yes O No
i need the answer quickly
3
A company is currently offering terms of 1/10 net 45 to its customers. If the average invoice is $200,000, and the company's cost of capital is 8%, would the company be better off if their customers take the discount or not? answer choices: No. The seller is better off by $580 if the buyers pay on Day 45 Yes, because the seller is better off by about $580 if the buyers take the discount. No. The seller is better off by $480 if the buyers pay on Day 45 Yes, because the seller is better off by about $480 if the buyers take the discount.
The Branson Corporation is considering a change in its cash-only policy. The new terms would be net one period. The required return is 2.5 percent per period. Current Policy New Policy Price per unit $ 85 $ 87 Cost per unit $ 45 $ 45 Unit sales per month 4,250 ? What is the break-even quantity for the new credit policy? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
1) A factoring company discounts a client a document with a maturity value of 40,000 at a discount rate of 16% simple per year with a maturity of 90 days. On the same day, the factoring company discounts the document at a financial institution that offers a discount rate of 15% simple annual rate. What was the profit that the factoring company obtained? options: 100 72 181 142
A company borrows $100,000 with interest at j₁2 = 9%. The loan is to be amortized by monthly payments of $1550 for as long as necessary. A final smaller payment will be calculated so the loan will be exactly repaid. The outstanding balance immediately after the th th 88 payment is $796.44. What is the value of the 89" and final payment? O A. $790.51 B. $796.44 C. $802.41 D. $808.43
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A holder of a 90-day bill with 40 days left to maturity and a face value of $ 100, 000 chooses to sell it into the market. If bills maturing in 40 days are currently yielding 1.75% per annum, what price will be obtained? (Assume there are 365 days in a year, and answers must be rounded to two decimal places) $ Please only use a plain number as your answer and don't insert a comma. For example, if you get 1000, please use 1000, and don't use 1,000.
24) Can i get help with this question please
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