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6. Match each marketable security with its description. (a) Eurodollar deposit (d) Commercial paper (e) Repurchase agreement Treasury bill Money market mutual fund (b) Treasury

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6. Match each marketable security with its description. (a) Eurodollar deposit (d) Commercial paper (e) Repurchase agreement Treasury bill Money market mutual fund (b) Treasury notes 1. An arrangement whereby a bank or securities dealer sells specific marketable securities to a firm and agrees to purchase them in the future. 2. Funds deposited in banks located outside the U.S. and denominated in U.S. dollars. 3. A short term, unsecured promissory note issued by a corporation 4. A portfolio of marketable securities. 5. An obligation of the U.S. Treasury with mutual maturities of between one and seven years. 6. An obligation of the U.S. Treasury with common maturities of 91 to 182 days. 7. Maggie's Gold Coins, Inc. is considering shortening its credit period and believes as a result of this change, its average collection period will decrease from 36 days to 30 days. Bad debt expenses are also expected to decrease from 1.5 percent to 0.8 percent of sales. The firm is currently selling 300,000 units but believes as a result of the change, sales will decline to 275,000 units. Maggie's Gold Coins, Inc. selling a product for $14 per unit. The variable costs per unit is $11 and fixed costs are $300,000. The firm has a required return on similar-risk investments of 20 percent. Evaluate this proposed change and make a recommendation to the firm. (Assume 360 days a year)

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