Business, 15.07.2020 01:01, jdkrisdaimcc11
Lancaster Lumber buys $8 million of materials (net of discounts) on terms of 3/5, net 50; and it currently pays on the 5th day and takes discounts. Lancaster plans to expand, which will require additional financing. Assume 365 days in year for your calculations.
a. If Lancaster decides to forgo discounts, how much additional credit could it obtain? Write out your answer completely. For example, 5 million should be entered as 5,000,000. Do not round intermediate calculations. Round your answer to the nearest cent.
$
b. What would be the nominal cost of that credit? Do not round intermediate calculations. Round your answer to two decimal places.
%
c. What would be the effective cost of that credit? Do not round intermediate calculations. Round your answer to two decimal places.
%
d. If the company could get the funds from a bank at a rate of 8%, interest paid monthly, based on a 365-day year, what would be the effective cost of the bank loan? Do not round intermediate calculations. Round your answer to two decimal places.
%
e. Should Lancaster use bank debt or additional trade credit?
-Select-Bank debtAdditional trade credit
Answers: 2
Business, 22.06.2019 03:30, clevelandjaniya1
Sarah salesrep is brand new to her job selling "lifetime" printers that never need replacement ink cartridges. the problem is that these printers cost ten times more than a regular printer, so it is difficult to get prospective buyers to understand the cost savings of buying it. to break through the barrier and begin making sales, sarah should use a analysis that highlights her printer's lower cost.
Answers: 3
Business, 22.06.2019 20:30, Roof55
When patey pontoons issued 4% bonds on january 1, 2018, with a face amount of $660,000, the market yield for bonds of similar risk and maturity was 5%. the bonds mature december 31, 2021 (4 years). interest is paid semiannually on june 30 and december 31?
Answers: 1
Lancaster Lumber buys $8 million of materials (net of discounts) on terms of 3/5, net 50; and it cur...
Mathematics, 15.10.2019 00:00
Mathematics, 15.10.2019 00:00
Health, 15.10.2019 00:00