Question

Which of the following actions would decrease the implicit interest rate on trade credit? Which of...

Which of the following actions would decrease the implicit interest rate on trade credit? Which of the following actions would increase the implicit interest rate on trade credit?

A) Increase the percent discount

B) Increase the number of days that the discount is available

C) Decrease the number of days that the discount is available

D) Increase the number of days before the payment is due

E) All of the answers are correct

F) None of the answers are correct

Homework Answers

Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

KEEP IN MIND THE FORMULA, YOU WILL GET ANSWER

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Which of the following would you expect to decrease the equilibrium interest rate? A. a decrease...
Which of the following would you expect to decrease the equilibrium interest rate? A. a decrease in the profitability of investment projects firms are considering B.an increase in the budget deficit C.a decrease in the percentage of income that households save D.an investment tax credit given to firms that purchase new capital E.more than one of the above is correct
Which of the following will increase the annualized effective cost of missing the trade credit discount?...
Which of the following will increase the annualized effective cost of missing the trade credit discount? a. An increase in the net trade credit period b. An increase in the discount percentage c. A decrease in the discount period d. A decrease in the invoice amount
Which of the following events will lead to a decrease in the equilibrium interest rate? a....
Which of the following events will lead to a decrease in the equilibrium interest rate? a. a sale of government securities by the Federal Reserve b. a decrease in Aggregate Expenditures c. an increase in the discount rate d. an increase in required reserve ratio Which of the following, most likely, leads to an increase in the interest rate? a. a decrease in Aggregate Expenditures b. a purchase of government securities by the Fed c. a decrease in the discount...
Which of the following actions by the Federal Reserve would reduce the money supply? (You can...
Which of the following actions by the Federal Reserve would reduce the money supply? (You can only answer once) an open-market purchase of government bonds a reduction in banks’ reserve requirements an increase in the interest rate paid on reserves a decrease in the discount rate on Fed lending
Which of the following actions would be most likely to reduce potential conflicts of interest between...
Which of the following actions would be most likely to reduce potential conflicts of interest between stockholders and managers? a.   Decrease the proportion of executive compensation that comes from stock options and increase the proportion that is paid as cash salaries. b.   Change the corporation's formal documents to make it more difficult for outside investors to acquire a controlling interest in the firm through a hostile takeover. c.   The percentage of the firm’s stock that is held by institutional investors such as mutual...
QUESTION 1: Which of the following will decrease the present value of the mixed cash flows...
QUESTION 1: Which of the following will decrease the present value of the mixed cash flows for years 1 through 5 of $1,000; $4,000; $9,000; $5,000; and $2,000 respectively given a 10% discount rate? (Choose all that apply - this is an all or nothing problem; if you choose an option that is wrong or do not choose an option that is correct, your entire answer will be marked wrong). Decrease the discount rate by 2%. Switch cash flows for...
1. Which would cause an increase in interest rates in credit markets?    a.   An increase...
1. Which would cause an increase in interest rates in credit markets?    a.   An increase in the supply of consumer saving    b.   A decrease in business demand for credit    c.   An increase in consumer demand for credit    d.   An increase in the supply of business saving 2. As interest rates decrease, the:    a.   Cost of current consumption relative to future consumption remains the same    b.   Cost of current relative to future consumption increases   ...
A) Which of the following statements is true? A. A credit to Utilities Expense would decrease...
A) Which of the following statements is true? A. A credit to Utilities Expense would decrease Retained Earnings. B. Cash, Dividends, Accumulated Depreciation, and Wage Expense all have debit balances. C. Expenses are increased with a debit, and decrease stockholders’ equity. D. The issuance of stock decreases a company’s assets and increases its stockholders’ equity. E. If a company purchases inventory on account, its total assets will not change. B) A company completes a job for which it had previously...
The idea that trade can make everyone better off applies to which of the following ?...
The idea that trade can make everyone better off applies to which of the following ? a. Different countries b. States within the United States c. Individuals d. Families e. All of these answers are correct f. None of the above (since there is always a loser in trade)
Which of the following is a synonym for interest rate? The required rate of return The...
Which of the following is a synonym for interest rate? The required rate of return The cost of capital The discount rate The opportunity cost All of the above If you are calculating how much you would pay at most for an investment that promises a payment of $1,000,000, 3 years from today, you are Spending Compounding Discounting Analyzing None of the above
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT