Ningbo Steel Was Extended Credit Terms of 3/15 Net 30

question 60

Multiple Choice

Ningbo Steel was extended credit terms of 3/15 net 30. If the firm were able to stretch its accounts payable to 50 days without damaging its credit rating, the cost of giving up the cash discount would only be

• A) 56.4%
• B) 32.3%
• C) 23.90%
• D) 22.6%%

Recognize the principles of efficient capital markets.

Identify the components of an asset's return on investment.

Analyze the significance of historical performance of asset classes for future investment decisions.

Define Efficient Markets Hypothesis (EMH) and its forms.

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Definitions:

NPV

Net Present Value, a calculation used to assess the profitability of an investment, representing the difference between the present value of cash inflows and outflows over a period of time.

Market Size

An estimation of the total volume of goods or services that is available for purchase within a specific market.

Crystal Ball

A software package used for risk analysis and simulation in Microsoft Excel.

Extract Data

The process of retrieving data from a database, document, or file for further use or analysis.