Suppose a company uses trade credit with the terms of 2/10, net 50. If the company pays
Question:
Suppose a company uses trade credit with the terms of 2/10, net 50. If the company pays their account on the 50th day, the effective borrowing cost of skipping the discount on day 10 is closest to
a. 14.6 percent.
b. 14.9 percent.
c. 15.0 percent.
d. 20.2 percent
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Related Book For
Fundamentals of corporate finance
ISBN: 978-0470876442
2nd Edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
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