Sarah Just Received an Invoice for $12,000 with Terms of 2/10,n/30.The

question 44

Multiple Choice

Sarah just received an invoice for $12,000 with terms of 2/10,n/30.The invoice date was June 1.Her contract with the vendor indicates a charge of 1.5 percent per month on late payments.If Sarah pays this bill on June 5 she will send the vendor a check for

• A)$12,000.
• B)$12,180.
• C)$11,760.
• D)Cannot answer without more information.

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Definitions:

Share Repurchases

The act of a company buying back its own shares from the marketplace, which can increase the value of remaining shares.

Reverse Stock Split

A corporate action in which a company reduces the number of its outstanding shares to increase the market value per share, consolidating them at a specified ratio (e.g., 1 for 10).

Small Investors

Individual or retail investors who commit smaller amounts of money in the financial markets compared to institutional investors.

Earnings Per Share

A company's profit divided by the outstanding shares of its common stock, serving as an indicator of a company's profitability.