PFIN 7:STUDENT EDITION-MINDTAP (1 TERM)
7th Edition
ISBN: 9780357033647
Author: Billingsley
Publisher: CENGAGE L
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Chapter 6, Problem 4LO
Summary Introduction
To discuss: The process of applying for, obtaining and managing the open forms of credit.
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Please correct answer and don't used hand raiting
Please correct answer and don't used hand raiting
Problem 16-8 Calculating Payments [LO 3]
Sexton Corporation has projected the following sales for the coming year:
Sales
Q1
$ 300
Q2
$ 390
Q4
$ 540
$ 480
Sales in the year following this one are projected to be 25 percent greater in each quarter.
Calculate payments to suppliers assuming that the company places orders during each quarter equal to 35 percent of projected sales
for the next quarter. Assume that the company pays immediately.
a. What is the payables period in this case?
Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.
Answer is complete and correct.
Payables period
0
What are the payments to suppliers each quarter?
Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.
Answer is complete but not entirely correct.
Q1
Payment of accounts
$
170.63
Q2
Q3
Q4
236.25 $
210.00
$
164.06
Chapter 6 Solutions
PFIN 7:STUDENT EDITION-MINDTAP (1 TERM)
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- Hello, Can you please show me how to solve this corporate finance problem? PetCare Lrd. is starting a new project. The value of the project will be $100 million at the end of the year if the project is successful, or $80 million if the project fails. PetCare Ltd. can do 100% equity financing or they can take on debt. The debt at the end of the year will be $50 million. Assume that PetCare Ltd. has $10 million dollars of bankruptcy costs, but no tax on debt. What is the total value of the project to all investors?arrow_forwardHi, I am stuck on this corporate finance problem. PetCare Lrd. is starting a new project. The value of the project will be $100 million at the end of the year if the project is successful, or $80 million if the project fails. PetCare Ltd. can do 100% equity financing or they can take on debt. The debt at the end of the year will be $50 million. Assume that this project takes place in a perfect capital market, beta is 0 and the risk free rate is 6%. What is the value of the project with debt financing and without debt financing?arrow_forwardPlease correct answer and don't used hand raitingarrow_forward
- history of IHTarrow_forwardHi, I am unsure how to solve this question. How do I calculate the values for the spaces marked with X? Additional information: Assume the M&M Model with corporate holds. Assume investors are taxed at a rate of 25% on equity income and 45% on debt income at personal tax rate.arrow_forwardHi I am stuck on how to fill our this chart for corporate finance. I need to fill in the black spaces. The problem is: Assume an M&M world with no taxes. The risk-free rate of return is 5% and the market riskpremium is 8%. Perth Corp. is financed with equity and debt according to the percentageslisted in the table below.arrow_forward
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