There are two parts to this learning team assignment; Part 1 was completed in Week 3.
Follow these instructions for completing and submitting your assignment: Do all work in Excel. Submit a single spreadsheet file for this assignment.
Do not submit multiple files. Place each problem on a separate spreadsheet tab. Label all inputs and outputs and highlight your final answer.
P Cash discount decisions Prairie Manufacturing has four possible suppliers, all of which offer different credit terms.
Except for the differences in credit terms, their products and services are virtually identical. The credit terms offered by these suppliers are shown in the following table. Assume a day year. Calculate the approximate cost of giving up the cash discount from each supplier.
Now assume that the firm could stretch by 30 days its accounts payable net period only from supplier M. What impact, if any, would that have on your answer in part b relative to this supplier?
The principal of both loans would be payable at maturity as a single sum. Calculate the effective annual rate of interest on each loan.
What could Weathers do that would reduce the effective annual rate on the State Bank loan? P Cost of commercial paper Commercial paper is usually sold at a discount. What effective annual rate will the firm pay for financing with commercial paper, assuming that it is rolled over every 90 days throughout the year?
P Inventory financing Raymond Manufacturing faces a liquidity crisis: Having no source of additional unsecured borrowing, the firm must find a secured short-term lender. Which plan do you recommend? Why or why not?3. Changes in the Operating Cycle [LO1] Indicate the effect that the following will have on the operating cycle.
Use the letter I to indicate an increase, the letter D for a decrease, and the letter N for no change:a. Average receivables goes up.b.
Credit repayment times for customers are increased.c. Inventory turnover goes from 3 times to 6 times.d. FIN Problems in Corporate Finance (4) Case problems in corporate financial management. Includes cases on management of current assets, obtaining short-term loans, raising long-term capital, capital budgeting, and dividend policy.
Read FIN Week 2 Chapter 4 Problems - P1, P2, P4, P5 - Strayer University NEW from the story by melaniemickel with reads. system, assignment, pri.