Answer:
I) Days sales outstanding (DSO) for all customers? 48.7days
= (53*0.9)+(10*0.1) = 48.7 days
II) Net sales? $166.600
The Net sales = Gross sales - sales allowance
The discount amount due for the 10% discount customers = 2% of the 10% of 170 mn ==> 0.02 * 0.1 * 170 ===> 0.34 mn
∴ The Net sales = 17 - 0.34 mn = 16.66 mn
Amount paid by discount customers? $13.600
Explanation:
I. General Credit Policy Information
Credit stamps 2/10 Net 30
Days sales outstanding (DSO) for all customers 48.7days
DSO for customers who take the discount (10%) 10days
DSO for customers who forgo the discount (90%) 53days
II. Annual Credit Sales and Costs ($ millions)
Gross sales $170.000
Net sales? $166.600
Amount paid by discount customers $13.600
Amount paid by non discounted customers $153.000
Variable operating costs (82% of gross sales) $139.40
Bad debts $0.0
Credit evaluation & collection costs (10% of gross sales) $17.00
Answer: d. inflation will increase.
Explanation:
The Natural rate of unemployment is the long term rate of unemployment which means that it is the rate associated with the Potential GDP.
If the Actual unemployment is less than this natural rate, it means that the Economy is performing better than the potential GDP. When this is happening, it means that the economy is overheating.
One of the symptoms of an overheated economy is increased inflation as more people can afford to buy goods and services. Inflation is therefore more probably rising in this economy.
Answer:
Let's say that the value of the US dollar goes down due to inflation.
A startup business would have to pay more money to it's employees, spend more money on products, try and charge the same prices, and lose a lot of money. Essentially, more money would be going out than coming in.
Answer:
cost of equity = 12.16 %
Explanation:
given data
annual dividend of $3.73
increases dividend = 3.40 percent annually
stock price = $43.96 per share
to find out
What is the company's cost of equity
solution
we will use here Gordon model for compute company's cost of equity that is
market value = 
........................1
put here value we get
43.96 = 
solve it we get
cost of equity = 0.121735
cost of equity = 12.16 %
Answer:
The correct answer is
A) An exchange of a long position in a fixed-rate bond for a short position in a floating-rate note.
Explanation:
Swapping a fixed interest for a floating one can occur if the fixed interest tenure in comparison to a floating exchange rate becomes less expensive for the entity who took the loan.
Also executing a swap in interest rates (that is giving up the fixed tenure for the floating tenure) helps to ensure that liabilities are kept at minimum whilst assets are maximised.
It is important to note that the capital remains unmodified.
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