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Unformatted text preview: the new, incremental sales. The firm can raise additional funds for investment in receivables at a nominal annual rate of 10 percent. 6. If you implicitly include the cost of interest on the firm's incremental investment in receivables, then what is the expected change in aftertax profit (net income) if this change in credit policy is made? A. $28.98 B. $34.86 C. $37.10 D. $40.32 E. $41.16 7. What would the interest rate on the incremental investment in accounts receivable have to be for this change in credit policy to produce an incremental change in aftertax profit (net income) of exactly zero? A. 16.09% B. 17.09% C. 18.09% D. 19.09% E. 10.09% YOU ARE GIVEN THE FOLLOWING INFORMATION FOR PROBLEMS 8  9:...
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 Spring '08
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