TikTok ul 10:23 AM cdn.fbsbx.com Done PR. 1 Financial Management 8. The credit policy of the company is "1.5/10, net 35." At present 30% of the customers take the discount, 62% pay within the net period, and the rest pay within 45 days of invoice. What would receivables be if all customers took the cash discount? A. Lower than the present level. B. No change from the present level. C. Higher than the present level. D. Unable to determine without more information. 9. EOQ is the order quantity that over our planning horizon. A. minimizes total ordering costs B. minimizes total carrying costs C. minimizes total inventory costs D. the required safety stock 10. The trade terms "2/15, net 30" indicate that: A. a 2% discount is offered if payment is made within 15 days. B. a 15% discount is offered if payment is made within 30 days. C. a 2% discount is offered if payment is made within 30 days. D. a 30% discount is offered if payment is made within 15 days. 11. If a discount date is missed for some reason, when should a rational manager pay the bill? A. As soon as possible after the discount date so as to not upset the supplier. B. No sooner than six months so as to maximize the use of "free" trade credit financing. C. On the final due date. D. None of the above. 12. The Company has negotiated a P500,000 revolving credit agreement with Fil National Bank. The agreement calls for an interest rate of 10% on fund used, a 15% compensating balance, and a commitment fee of 1% on the unused amount of the credit line. Assuming that the compensating balance would not otherwise be maintained, the effective annual interest cost if the firm borrows P200,000 for one year is closest to A. 11.5 percent. B. 15 percent. C. 26.5 percent. D. 13.53 percent. 13. The type(s) of collateral generally used for a secured short-term loan is(are) A. inventory and/or receivables B. common stock and/or bonds C. real estate D. machinery 14. Which of the following would be considered a risk-free investment? A. Gold B. Equity in a house C. High-grade corporate bonds D. Treasury bills pg. 2