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
