Bismark Co. is in the process of considering a change in its terms of sale. The current
Question:
Bismark Co. is in the process of considering a change in its terms of sale. The current policy is cash only; the new policy will involve one period’s credit. Sales are 25,000 units per period at a price of $450 per unit. If credit is offered, the new price will be $472. Unit sales are not expected to change, and all customers are expected to take the credit. Bismark estimates that 3 percent of credit sales will be uncollectible. If the required return is 2.5 percent per period, is the change a good idea?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (14 reviews)
Input Area Net 1 Unit sales per period 25000 New unit sales pe...View the full answer
Answered By
Ashington Waweru
I am a lecturer, research writer and also a qualified financial analyst and accountant. I am qualified and articulate in many disciplines including English, Accounting, Finance, Quantitative spreadsheet analysis, Economics, and Statistics. I am an expert with sixteen years of experience in online industry-related work. I have a master's in business administration and a bachelor’s degree in education, accounting, and economics options.
I am a writer and proofreading expert with sixteen years of experience in online writing, proofreading, and text editing. I have vast knowledge and experience in writing techniques and styles such as APA, ASA, MLA, Chicago, Turabian, IEEE, and many others.
I am also an online blogger and research writer with sixteen years of writing and proofreading articles and reports. I have written many scripts and articles for blogs, and I also specialize in search engine
I have sixteen years of experience in Excel data entry, Excel data analysis, R-studio quantitative analysis, SPSS quantitative analysis, research writing, and proofreading articles and reports. I will deliver the highest quality online and offline Excel, R, SPSS, and other spreadsheet solutions within your operational deadlines. I have also compiled many original Excel quantitative and text spreadsheets which solve client’s problems in my research writing career.
I have extensive enterprise resource planning accounting, financial modeling, financial reporting, and company analysis: customer relationship management, enterprise resource planning, financial accounting projects, and corporate finance.
I am articulate in psychology, engineering, nursing, counseling, project management, accounting, finance, quantitative spreadsheet analysis, statistical and economic analysis, among many other industry fields and academic disciplines. I work to solve problems and provide accurate and credible solutions and research reports in all industries in the global economy.
I have taught and conducted masters and Ph.D. thesis research for specialists in Quantitative finance, Financial Accounting, Actuarial science, Macroeconomics, Microeconomics, Risk Management, Managerial Economics, Engineering Economics, Financial economics, Taxation and many other disciplines including water engineering, psychology, e-commerce, mechanical engineering, leadership and many others.
I have developed many courses on online websites like Teachable and Thinkific. I also developed an accounting reporting automation software project for Utafiti sacco located at ILRI Uthiru Kenya when I was working there in year 2001.
I am a mature, self-motivated worker who delivers high-quality, on-time reports which solve client’s problems accurately.
I have written many academic and professional industry research papers and tutored many clients from college to university undergraduate, master's and Ph.D. students, and corporate professionals. I anticipate your hiring me.
I know I will deliver the highest quality work you will find anywhere to award me your project work. Please note that I am looking for a long-term work relationship with you. I look forward to you delivering the best service to you.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Fundamentals of corporate finance
ISBN: 978-0078034633
10th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
Question Posted:
Students also viewed these Corporate Finance questions
-
A utility company is in the process of considering two alternative methods of providing transformer capacity. ¢ Option 1: Purchase a 16 MVA transformer now and add a similar-sized unit at a...
-
A New York-based MNC is in the process of staffing a subsidiary in New Delhi, India. Why would it consider using expatriate managers in the unit? Local managers? Third-country managers?
-
The nick lumber company is in the process of deciding whether to sell or process further rough sawn lumber, the joint cost of producing the rough sawn lumber is $10,500, the following data is...
-
The adjusted trial balance of Silver Sign Company follows: Requirements 1. Assume Silver Sign Company has a January 31 year end. Journalize Silvers closing entries at January 31. 2. How much net...
-
The shear-force diagram for a beam is shown in the figure. Assuming that no couples act as loads on the beam, determine the forces acting on the beam and draw the bendingmoment diagram. 652 lb 580lb...
-
In Exercises 110, find the slope of the line passing through each pair of points or state that the slope is undefined. Then indicate whether the line through the points rises, falls, is horizontal,...
-
How can social media be used to enhance report preparation and presentation?
-
The overall average on a process you are attempting to monitor is 50 units. The process standard deviation is 1.72. Determine the upper and lower control limits for a mean chart, if you choose to use...
-
Express as a product. log M11
-
Which of the graphs in Fig. Q25.12 best illustrates the current I in a real resistor as a function of the potential difference V across it? Explain. Figure Q25.12 (a) (b) (c) (d)
-
Solar Engines manufactures solar engines for tractor-trailers. Given the fuel savings available, new orders for 125 units have been made by customers requesting credit. The variable cost is $11,400...
-
The Johnson Company sells 2,400 pairs of running shoes per month at a cash price of $99 per pair. The firm is considering a new policy that involves 30 days credit and an increase in price to $100...
-
Compare and contrast a calendar year versus a fiscal year.
-
A two stage rocket is one which uses multiple engines during its flight. A two stage rocket whose weight is 15.39 N is moving upward at 65.2 m/s when its second engine ignites. The thrust of the...
-
67) A spring, k = 600 N/m, is compressed 0.08 m, shooting a 0.09 kg marble at some angle in the air. When the marble is 0.4 m above the starting height, how much kinetic energy will the marble have?
-
Jordan and Terry are business partners who are engaged in a dispute. They meet with a neutral third party to try to resolve the dispute with a binding award. Jordan and Terry are engaged in...
-
WHAT S CRYPTOGRAPHY? Cryptography is a specialized field within computer science and information security, revolving around the practice and study of techniques ensuring secure communication. The...
-
in a command economy, the _ _ _ _ wither makes most exonomoc decisions itself or at least strongly influences how the decisions are made
-
Predict the major product in each case that would be obtained when the following epoxide reacts with water under (a) Basic conditions; (b) Acidic conditions. (CH3)3C- CH
-
Prove the formula for (d/dx)(cos-1x) by the same method as for (d/dx)(sin-1x).
-
Which of the following index numbers could be found by using the data in question 8? (a) Simple aggregative index (b) Laspeyres index (c) Fishers ideal index (d) Weighted aggregative index (e)...
-
Skye Flyer, Inc., has weekly credit sales of $23,500, and the average collection period is 34 days. What is the average accounts receivable figure?
-
Evil Pop, Inc., has an average collection period of 29 days. Its average daily investment in receivables is $43,900. What are annual credit sales? What is the receivables turnover? Assume 365 days...
-
1. Which credit policy should the company use? 2. Notice that in option 3, the default rate and administrative costs are above those in option 2. Is this plausible? Why or why not? Sterling Wyatt,...
-
A 0.55 kg block of ice is sliding by you on a very slippery floor at 3.5 m/s. As it goes by, you give it a kick perpendicular to its path. Your foot is in contact with the ice block for 0.0035...
-
Write a script called ChangeExtensions that accepts two file name extensions as arguments, and renames all files with the first extension to have the second extension. For example, Change Extensions...
-
Write an HTML document that draws the trapezoid (a rectangle that is wider on one side) below in Canvas. (30,30) 50 50 70
Study smarter with the SolutionInn App