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| Teaching Since: | Apr 2017 |
| Last Sign in: | 419 Weeks Ago |
| Questions Answered: | 3232 |
| Tutorials Posted: | 3232 |
MBA,MCS,M.phil
Devry University
Jan-2008 - Jan-2011
MBA,MCS,M.Phil
Devry University
Feb-2000 - Jan-2004
Regional Manager
Abercrombie & Fitch.
Mar-2005 - Nov-2010
Regional Manager
Abercrombie & Fitch.
Jan-2005 - Jan-2008
1. Filbeck Company buys on terms of 2/15, net 30 days. It does not take discounts, and it typically pays 30 days after the invoice date. Net purchases amount to $500,000 per year. On average, how much %u201Cfree%u201D trade credit does the firm receive during the year? (Assume a 365-day year.)
Clearly identify your answer:Â The firm receives free trade credit during the year of ______. Round your answers to 2 decimal places. $X,XXX.XX Show your work
2. Carroll & King Corporation has $500,000 of inventory and $200,000 of accounts receivable. Its average daily sales are $12,000. The company%u2019s payables deferral period (accounts payable divided by daily purchases) is 30 days. What is C&K%u2019s cash conversion cycle?
Clearly identify your answer:Â The cash conversion cycle is ______. Round your answers to 2 decimal places. XX.XX Days. Show your work
3.Suppose Yon Sun Corporation%u2019s free cash flow during the just-ended year (t = 0) was $120 million, and FCF is expected to grow at a constant rate of 7% in the future. If the weighted average cost of capital is 13%, what is the firm%u2019s value of operations, in millions?
Clearly identify your answer:Â The firm's value of operations is ______. Round your answers to 2 decimal places. $X,XXX.XX . Show your work.
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