Which of the following would NOT fall under the heading of short-term financial planning?

Select one:

a. A firm that considers offering cash discounts to customers if they pay within 10 days.

b. A firm that considers whether to pay a stock dividend or not.

c. A firm that considers steps to shorten its collection period.

d. A firm that considers increasing inventory to increase responsiveness to its customers.

e. A firm that considers making it easier for customers to purchase on credit.

Question 24

Your firm currently sells 500 units a month at a price of $75 a unit. You think you can increase your sales by an additional 130 units if you switch to a net 30 credit policy. The monthly interest rate is .4 percent and your variable cost per unit is $35. What is the incremental cash inflow from the proposed credit policy switch?

Select one:

a. $6,000

b. $2,400

c. $3,600

d. $5,200

e. $1,800

Question 25

Your firm deals strictly with three customers. The average amount that each customer pays per month along with the collection delay associated with each payment is shown below. Given this information, what is the weighted average delay? Assume that every month has 30 days.

Customer	Item Amount	Delay
A	$57,800	3 days
B	$62,400	4 days
C	$71,200	2 days

Select one:

a. 2.95 days

b. 3.38 days

c. 2.67 days

d. 3.57 days

e. 3.41 days