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-Dominant- [34]
3 years ago
10

Virginia Supply offers their customers trade credit with terms 2/15, net 30. This implies that: Virginia's customers have very l

ittle incentive to pay within the discount period. paying within 30 days will let a customer deduct 15% off the invoice price. the annual financing cost of failing to pay within 15 days is about 48%. most customers will pay their bill within 2 days in order to take the maximum discount.
Business
1 answer:
tamaranim1 [39]3 years ago
3 0

Answer:

The answer is given below;

Explanation:

This implies that 2%discount will be allowed if the customer pays within 15 days, otherwise normal credit period of the firm is 30 days.

From the given option, the closest choice is; Virginia's customers have very little incentive (i.e 2% discount) to pay within the discount period (which is 15 days).

Therefore the customers will not pay within 15 days just for 2% discount as normal credit period is 30 days.

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Stephen runs a pet salon. He is currently grooming 130130 dogs per week. If instead of grooming 130130 ​dogs, he grooms 131131 ​
borishaifa [10]

Answer:

Profit will increase by $2.3

Explanation:

Data provided in the question:

If instead of grooming 130130 ​dogs, he grooms 131131 ​dogs

Marginal cost = $65.82

Marginal revenue = $68.12

Now,

The effect on his profits of grooming 131 dogs instead of 130 ​dogs will be:

Change in profit = Marginal revenue - Marginal cost

or

Change in profit = $68.12 - $65.82

or

Change in profit = $2.3

Hence,

Profit will increase by $2.3

7 0
2 years ago
Where do you think the biggest hole is in the registration statement?
Alex17521 [72]
In the United States, a registration statement is a set of documents, including a prospectus, which a company must file with the U.S. Securities and Exchange Commission before it proceeds with a public offering.

Not that sure though
Best luck with your studying
8 0
2 years ago
The accountants at Global Finances can take work home for as many days as they like as long as their spreadsheets are up to date
lorasvet [3.4K]

Answer:

Telecommuting.

Explanation:

This is a flexible work pattern in which employees are allowed to carry out their tasks from  homes or other various locations outside the principal office .

It does not mean a total cut off from the office as occasional appearance and constant communication is required .

It has its advantages in improved moral , retaining best hands , increased productivity and cost savings.

The disadvantages include lack of supervision ,isolation and in - effective use of work hours

8 0
3 years ago
Lincoln Park Co. has a bond outstanding with a coupon rate of 5.73 percent and semiannual payments. The yield to maturity is 6.7
Natalija [7]

Answer:

Bond Price​= $1,774.05

Explanation:

Giving the following information:

Coupon rate= 0.0573/2= 0.02865

YTM= 0.067/2= 0.0335

The bond matures in 23 years.

Par value= $2,000

<u>To calculate the bond price, we need to use the following formula:</u>

Bond Price​= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]

Bond Price​= 57.3*{[(1 - (1.0335^-46)] / 0.0335} + [2,000/1.0335^46]

Bond Price​= 1,334.76 + 439.29

Bond Price​= $1,774.05

5 0
2 years ago
Marpor Industries has no debt and expects to generate free cash flows of $16 million each year. Marpor believes that if it perma
tatyana61 [14]

Answer and Explanation:

The computation is shown below:

a.  Marpor's value without leverage is

But before that first we have to calculate the required rate of return which is

The Required rate of return = Risk Free rate of return + Beta × market risk premium

= 5% + 1.1 × (15% - 5%)

= 16%

Now without leverage is

= Free cash flows generates ÷ required rate of return

= $16,000,000 ÷ 16%

= $100,000,000

b. And, with the new leverage is

= (Free cash flows with debt ÷ required rate of return) + (Tax rate × increase of debt)

= ($15,000,000 ÷ 0.16) + (0.35 × $40,000,000)

= $93,750,000 + $14,000,000

= $107,750,000

5 0
3 years ago
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