Happy Times currently has an all-cash credit policy. It is considering making a change in the credit

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Happy Times currently has an all-cash credit policy. It is considering making a change in the credit policy by going to terms of net 30 days. Based on the following information, what do you recommend? The required return is .95 percent per month.

Current Policy New Policy

Price per unit.........................$290.....................$295

Cost per unit........................$230........................234

Unit sales per month..............1,105........................1,125

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Fundamentals of corporate finance

ISBN: 978-0073382395

9th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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Question Posted: Dec 16, 2016 02:04 PM

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Happy Times currently has an all-cash credit policy. It is considering making a change in the credit

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Given data Net 30 Required return 095 Current Poli...View the full answer

Fundamentals of corporate finance

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