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Credit spreads tend to widen as the credit cycle improves.
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Solved in 2 steps
- Explain the determinants of credit olicy variables. 2. Explain the hotives for the extension of the rade credit.Briefly discuss the following: 1. When does commercial credit occurs? 2. What attributes does commercial credit have? 3. What are the elements that influence the credit period? 4. What are the advantages of trade discounts? 5. When can we use anticipation rates?1. Credit spreads least likely depend on which of the following: A. Market supply B. Market demand C. Financial markets D. Inflation
- Need help with a and b as well as the last question on whether the internal rate of return is the same as discount rateThe discount rate is the combination of what two types of discounting? a. exponential and linear b. social and monetary c. present and future d. growth and timeExplain CECL (“Current Expected Credit Loss”) model.
- The NPV profile: O A. shows the payback period the point at which NPV is positive. O B. shows the internal rate of return the point at which NPV is zero. OC. shows the NPV over a range of discount rates. O D. B and C are correct.Briefly describe the NVP, IRR, accounting rate of return, and payback period for this analysis. Indicate the discount rate you used and how you arrived at it.To calculate the Internal Rate of Return, you need to know what interest rate to start with. True or False? Please give reasoning as to why.