Question: FAST answer please just need option 4G lI. : D Question 21 1 pts Several questions are associated with the following case study Zipwire PLC

FAST answer please
just need option
FAST answer please just need option 4G lI. : D Question 21
1 pts Several questions are associated with the following case study Zipwire
PLC is considering whether to implement a new credit policy. It currently

4G lI. : D Question 21 1 pts Several questions are associated with the following case study Zipwire PLC is considering whether to implement a new credit policy. It currently sells all its products without offering credit, but it is considering extending a credit period of thirty days to its customers. The management team have prepared the following table of forecasts to allow comparison of the existing policy with the new policy. Assume that if adopted the new strategy will be continued in perpetuity, otherwise the existing, no credit strategy will remain in perpetuity. Zipwire PLC Credit No Credit 40 E30 13.000 1 Price per unit sold Cost per unit sold Quantity of units sold per 30 days Probability of payment, Financing costs per 30 days 34 15,000 0.98 1.10% Required: What is the default probability for 4G ll. 1 : without offering credit, but it is considering extending a credit period of thirty days to its customers. The management team have prepared the following table of forecasts to allow comparison of the existing policy with the new policy. Assume that if adopted the new strategy will be continued in perpetuity, otherwise the existing, no credit strategy will remain in perpetuity. Zipwire PLC Price per unit sold Cost per unit sold Quantity of units sold per 30 days Probability of payment, Financing costs per 30 days No Credit E40 330 13,000 1 Credit E43 13 15.000 096 1.10% Required: What is the default probability for Zipwire's customers? 1.0% 1.1% O 2.0% 2.1% Question 22 2 pts Several questions are associated with the following case study Zipwire PLC is considering whether to implement a new credit policy. It currently sells all its products without offering credit, but it is considering extending a credit period of thirty days to its customers. The management team have prepared the following table of forecasts to allow comparison of the existing policy with the new policy, Assume that if adopted the new strategy will be continued in perpetuity, otherwise the existing, no credit strategy will remain in perpetuity. Zipwire PLC Price per unit old Costerunit sold Quantity of units sold per 10 days Probability of payment Financing costs per days No Credit 40 CO 12.000 1 Credit 143 014 25.000 09 110 Required: How much additional working capital is required for Zipwire's new credit strategy? 390,000 510,000 520,000 645,000

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