A large retailer obtains merchandise under the credit terms of 1/15, net 45, but routinely takes 60
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A large retailer obtains merchandise under the credit terms of 1/15, net 45, but routinely takes 60 days to pay its bills. Given that the retailer is an important customer, suppliers allow the firm to stretch its credit terms. What is the retailer’s effective cost of trade credit?
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Effective cost of trade credit 1 199 811 10 ...View the full answer
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Related Book For 
Financial management theory and practice
ISBN: 978-0324422696
12th Edition
Authors: Eugene F. Brigham and Michael C. Ehrhardt
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