a) Kapanzola Company is considering changing its credit terms from 2/15, net 30 to 3/10, net 30 , in order to speed up collections. At present, 60% of kapanzola's customers take the 2% discount. Under the new terms, discount customers are expected to rise to 60%. Regardless of the credit terms, half of the customers who do not take the discount are expected to pay on time, while the remainder will pay 10 days late. The change does not involve the alteration of credit standards and therefore bad debt losses are not expected to rise above their present 2% level. However, the more generous cash discount offer is expected to increase sales from sh 1m to sh 2.2m per year. The variable cost is 70% and the interest rate of funds invested in accounts receivable is 12%. Should the company change its credit terms (8Marks) b) Naivas Itd is targeting Uchumi supermarket Itd for a hostile takeover. The management of Uchumi Supermarket Itd is considering which defense mechanism to use in order to block the acquisition. Briefly explain to the management of Naivas Itd any three defense strategies applicable in a hostile takeover situation. (7Marks)