ADM 2342 Final: ADM 2340 Final- W08- Sol.doc
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25 d c b c a b b a c a d b d d c d c a d b a a b d c. [60,000 + 20,000 (1-. 25)] 600,000 =12. 5% & The decision depends on the risk aversion & of the investor. Gibson has higher returns && than batter; however, it also has higher risks & due to the use of debt to partially finance the assets: accounts receivable turnover. 66 days &: alberto is taking much longer to collect its accounts receivables than is required per their credit policies (66 days versus 45 days). && the company needs to revisit its credit policies and take steps to ensure faster collection. The company may also need review their criteria for granting credit to try and prevent granting credit to customers who do not pay within the required 45 days.