Reading 38, Q12.

This question is somewhat similar to Q7 on P324, but it doesn’t need an extensive calculation.

The answer introduces “effective conversion rate” = X + call premium and can quickly come up a solution.

This is cool and looks reasonable, but it’s still like a magic to me. Can you share your insights on this question?

Yes, this can be used in Q7 as well to know the minimum value of receivables

Thanks a lot.