This preview shows page 1. Sign up to view the full content.
Unformatted text preview: Therefore as a bank loan officer I would be interested in extending the loan because there is high probability that the company will remain stable and be able to pay off the loan. There is not a high probability the company will go bankrupt and if it does they should be able to pay back debt through liquidating their assets. c) CC should relax its collection efforts if the pretax opportunity cost of funds is 16 percent, the variable cost ratio is 75 percent, and taxes are 40 percent because . 2....
View Full Document
- Fall '11