ABC Corp. extends credit terms of 45 days to its customers. Its ...

[plus1]

ABC Corp. extends credit terms of 45 days to its customers. Its credit collection would likely be considered poor if its average collection period was ________.
 
  A) 30 days
  B) 36 days
  C) 44 days
  D) 57 days

Question 2

If a corporation has an average tax rate of 40 percent, the approximate, annual, after-tax cost of debt for a 15-year, 12 percent, 1,000 par value bond, selling at 950 is ________.
 
  A) 10 percent
  B) 10.6 percent
  C) 7.7 percent
  D) 6.0 percent

[emsimon14]

Answer to Question 1

D

Answer to Question 2

C