ANSWER ONLY 3 of these 5 Questions: A. Find the Nominal…
Questions
ANSWER ONLY 3 оf these 5 Questiоns: A. Find the Nоminаl аnd effective cost of this offer: 1.5/14 net 42 A1. Nominаl cost A2. Effective Cost (2 points each) B. Santa Sleigh Stockers has an inventory conversion period of 50 days, an average collection period of 37 days, and a payables deferral period of 32 days. Annual sales are $(A123456) and the cost of goods sold is 81.1% of sales. B1. What is the Cash Conversion Cycle (remember it is in Days) B2. If all sales are on credit, what is the firm's investment in Accounts Receivable ? B3. How many times does the firm turn over its inventory? B4. what is the balance of accounts payable? (1 points each) C. Deathbed Casket Company has been offered terms from its suppliers of brass hardware. Brass Handles is offering these terms to encourage timely payment (and increase their market share): 1/12 net 30. C1. Calculate the nominal cost of trade credit (1 point) C2. Calculate the effective cost of trade credit. (1 point) C3. If the Deathbed Casket Company has little extra cash, but their bank will lend them money at a nominal cost 0f 19% for inventory loans, what day should Deathbed Pay their invoice? (2 points) D. Big Daddy Liquor Store has been negotiating a bank loan to expand its drive through services in an effort to encourage the use of alcohol to combat the effects of COVID 19, The Flu, and Sobriety without customers requiring to wear a mask or get out of the car to enter the premises. Note that Big Daddy does not have any additional funds, so he would have to borrow to meet the compensating balance or other requirements. The cost of the drive through is ${(A1234567)/2} (for most of you this will be over $200,000). Calculate the effective rates of these loan options: D1. How much will the investment cost? (0 point) D2. If the interest rate is 12.75% on a simple interest loan with no compensating balance requirement and interest due at the end of the year, what is the AMOUNT BORROWED & the EFFECTIVE cost of this loan (2 values required)? (2 points) D3. If the interest rate is 9.25% on a simple interest loan with a 10% compensating balance requirement and interest due at the end of the year, what is the AMOUNT BORROWED & the EFFECTIVE cost of this loan (2 values required)? (2 Points) E. Sweet Granny's Liquor Store has been negotiating a bank loan to expand its drive through services in an effort to encourage the use of alcohol to combat the effects of COVID 19, The Flu, and Sobriety without customers requiring to wear a mask or get out of the car to enter the premises. Note that Granny does not have any additional funds, so he would have to borrow to meet the compensating balance or other requirements. The cost of the drive through is ${(A1234567)/2} (for most of you this will be over $200,000). Calculate the effective rates of these loan options: E1. If the interest rate 8.875% rate on a discounted Loan, end of the year payment. How much must be the AMOUNT BORROWED & the EFFECTIVE cost of this loan (2 values required)? E2. IF the interest rate is 7.25% add on interest with monthly payments, how much must be the AMOUNT BORROWED and what is the EFFECTIVE cost of this loan (2 values required)?