The Expected Return on the Market Is 10%,the Risk Free

question 28

Multiple Choice

The expected return on the market is 10%,the risk free rate is 5% and Midnight Rider Trucking Inc.has a beta of 1.2.What is the expected return for Midnight Rider Trucking Inc.?

• A) 4%
• B) 7%
• C) 11%
• D) 13%
• E) 16%

Recognize the impact of competition and product cost on the length of credit periods offered.

Understand the importance of cash discounts in the decision to offer credit.

Comprehend how changes in credit terms affect the cost of credit for customers.

Recognize the terms used in credit management such as receivables period and inventory turnover.