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mantparn mantparn
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7 years ago
Maggie's Gold Coins, Inc. is considering shortening its credit period from 30 days to 20 days and believes, as a result of this change, its average collection period will decrease from 36 days to 30 days. Bad debt expenses are also expected to decrease from 1.2 percent to 0.8 percent of sales. The firm is currently selling 300,000 units but believes as a result of the change, sales will decline to 275,000 units. On 300,000 units, sales revenue is $4,200,000, variable costs total $3,300,000, and fixed costs are $300,000. The firm has a required return on similar-risk investments of 15 percent. Evaluate this proposed change and make a recommendation to the firm.
Textbook 
Principles of Managerial Finance

Principles of Managerial Finance


Edition: 14th
Authors:
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donnabandonnaban
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7 years ago
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mantparn Author
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#2
6 years ago
Thanks for the assistance, I've marked your post as best answer
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#3
4 years ago
Awesome!
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#4
4 years ago
thank you
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#5
3 years ago
yyyyyyyyyyyy
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#6
3 years ago
Thank you for the assistance. Best answer so far
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#7
3 years ago
Great!
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#8
3 years ago
thank you for the help
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#9
3 years ago
Thanks!
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#10
3 years ago
Thanks!
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#11
3 years ago
Thank you
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#12
3 years ago
thanks
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#13
3 years ago
thank you
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