Which One of the Following Will Increase a Bid Price

question 42

Multiple Choice

Which one of the following will increase a bid price?

• A)a decrease in the fixed costs
• B)a reduction in the net working capital requirement
• C)a reduction in the firm's tax rate
• D)an increase in the salvage value
• E)an increase in the required rate of return

---

Definitions:

End-Of-Month Payments

Payments that are due at the end of each month, commonly found in loan and lease agreements.

Finance Company

A business that provides loans to individuals or other businesses and generates profit from the interest on these loans.

Conditional Sale

A sales agreement that includes conditions that must be met before the sale is final and the property is transferred to the buyer.

Ordinary Annuity

A series of equal payments made at regular intervals over a specified period of time.