BUSINESS CALCULATOR ONLY!

4. Waldron is considering selling to a group of new customers that will bring in sales of $8,000,000 with a bad debt percentage of 15%. Waldron will have collection costs of $144,000 and C/G/S & selling expenses of 70% of sales. They have tax rate of 30%. The only additional investment they will have is in accounts receivable in which they turnover of 4. Their return on investment will be: A. 9.24% B. 36.96% C. 34.32% D. 8.58% 8. Andy Co. borrows $640,000 and will pay it back in twelve equal installments over the year (every month). The interest on this loan is $51,200 which will also be paid back in four equal installments. The effective interest rate on this loan is: A. 12.60% B. 3.15% C. 15.39% D. 8.00% E. 13.21% 9. The cost of capital of a company is the: A. Rate necessary on investments to satisfy preferred stockholders. B. Rate necessary on investments to satisfy the debt holders. C. Rate necessary on investments to satisfy common stockholders. D. Discount rate given to the banks