Question
Blackberry currently has an all-cash credit policy. It is considering making a change in the credit policy by going to terms of net 30 days.
Blackberry currently has an all-cash credit policy. It is considering making a change in the credit policy by going to terms of net 30 days. Based on the following information, what would you recommend? The required return in 0.95% per month.
|
| Current policy | New policy |
| Price per unit | $150 | $154 |
| Cost per unit | $130 | $133 |
| Unit Sales per month | 1,550 | 1,580 |
(a) The two policies give the same outcome
(b) Firm A should not switch to the new policy
(c)Firm A should switch to the new policy
(d) None of the above
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Short Term Financial Management
Authors: John Zietlow, Matthew Hill, Terry Maness
5th Edition
1516512405, 9781516512409
