29.3 The Tropeland Company has obtained the following information: Annual credit sales = $30 million Collection period=

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29.3 The Tropeland Company has obtained the following information:

Annual credit sales = $30 million Collection period= 60 days Terms: Net 30 Interest rate = 12%

The company is considering offering terms of 4/10, net 30. It anticipates that 50 percent of its customers will take advantage of the discount. The collection period is expected to decrease by one month. Should the new credit policy be adopted?

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Corporate Finance

ISBN: 9780071229036

6th International Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

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Question Posted: Jul 26, 2024 05:00 AM

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29.3 The Tropeland Company has obtained the following information: Annual credit sales = $30 million Collection period=

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Corporate Finance

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