Question
1) .Your firm purchases goods from its suppier on terms of 4/24, net 36. What is the effective annual cost to yourfirm if it chooses
1) .Your firm purchases goods from its suppier on terms of 4/24, net 36. What is the effective annual cost to yourfirm if it chooses not to take advantage of the trade discount offered?
2) A company expects capital expenditures and depreciation to continue to offset each other and for both net income and increases in working capital to grow at 6.32% per year. The firm cost of capital is 16.85%. If the firm was able to reduce its annual increase in working capital by 31.05%, What would be the effect on firm's value?. The firm Free Cash Flow and Working Capital for the year was 1.54M and 25.13M respectively
3) Company A's for 2018 had $50008.08M in Sales, $35933.49M Cost of Goods Sold. The Account Receivable was $6086.44M. Finally, the Inventory and Accounts Payable were $2182.68M and $13225.93M respectively. The company increases sales by 33% however keeping the same inventory. Applying the percentage of Sales Method, what would be the new CCC?
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