9,10,11

The aggressive approach to the financing of a firm's current assets uses a proportion of short-term debt and a proportion of long-term debt. low; high relatively high; relatively low high interest; low interest none of the above What is the length of the cash conversion cycle for a firm with annual sales (all cash) of $280,000. an inventory conversion period of 35 days, and a payables deferral period of 25 days? 0 days 25 days 10 days none of the above Suppose the credit terms offered to your firm by your suppliers arc 2/10, net 30 days. Out of convenience, your firm is not taking discounts, but is paying after 20 days, instead of waiting until day 30. You point out that the approximate cost of not taking the discount and paying on day 30 is around 37 percent. But since your firm is not taking discounts and is paying on day 20, what is the effective annual percentage cost (not approximate) of your firm's current practice, using a 360-day year? 36.7% 105.4% 73.4% 43.6% 106.9% A firm is offered trade credit terms of 3/15, net 45 days. The firm does not take the discount, and iv pays after 67 days. What is the nominal annual cost of not taking the discount? (Assume a 365-day year.) 21.71% 22.07% 22.95% 23.48% 24.52% X YZ Corporation has net income of 25M and has 10M shares outstanding and has TOM of excess cash earning zero percent interest. Its shares are currently trading at 40. If XYZ were to use all of the excess cash to repurchase its shares at the current market price, what will be the new market price per share, assuming that XYZ will continue to trade at the same P/E multiple? 42 44 48 50