Business, 07.10.2019 17:10 trent1002brown

Blueroot inc. is considering a change in its financing policy. currently, it uses maximum trade credit by not taking discounts on its purchases. the standard industry credit terms offered by all its suppliers are 2/10 net 30 days, and the firm pays on time. the new cfo is considering borrowing from its bank, using short-term notes payable, and then taking discounts. the firm wants to determine the effect of this policy change on its net income. its net purchases are $11,760 per day, using a 365-day year. the interest rate on the notes payable is 10%, and the tax rate is 40%. if the firm implements the plan, what is the expected change in net income?

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 19:20

Nominal gross domestic producta. is a measure of the overall level of pricesb. measures the value of final goods and services produced within the borders of a given country during a given time period using current pricesc. measures the value of final goods and services produced within the borders of a given country during a given time period corrected for changing pricesd. only changes when the level of output changes

Answers: 2

Answer

Business, 22.06.2019 12:40

When cell phones were first entering the market, they were relatively large and reception was undependable. all cell phones were essentially the same. but as the technology developed, many competitors entered, introducing features unique to their phones. today, cell phones are only a small fraction of the size and weight of their predecessors. consumers can buy cell phones with color screens, cameras, internet access, daily planners, or voice activation (and any combination of these features). the history of the cell phone demonstrates what marketing trend?

Answers: 3

Answer

Business, 22.06.2019 17:30

Communication comes in various forms. which of the following is considered an old form of communication? a) e-mail b) letter c) skype d) texting

Answers: 2

Answer

Business, 23.06.2019 02:00

When making a major purchase, i often spend months to learn all the issues?

Answers: 3

Answer

You know the right answer?

Blueroot inc. is considering a change in its financing policy. currently, it uses maximum trade cred...