Your supplier offers terms of 1/10, net 45. What is the effective annual cost of trade credit
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 53% (13 reviews)
Plan Calculate the cost of not taking the trade discount E...View the full answer
Answered By
Ali Khawaja
my expertise are as follows: financial accounting : - journal entries - financial statements including balance sheet, profit & loss account, cash flow statement & statement of changes in equity -consolidated statement of financial position. -ratio analysis -depreciation methods -accounting concepts -understanding and application of all international financial reporting standards (ifrs) -international accounting standards (ias) -etc business analysis : -business strategy -strategic choices -business processes -e-business -e-marketing -project management -finance -hrm financial management : -project appraisal -capital budgeting -net present value (npv) -internal rate of return (irr) -net present value(npv) -payback period -strategic position -strategic choices -information technology -project management -finance -human resource management auditing: -internal audit -external audit -substantive procedures -analytic procedures -designing and assessment of internal controls -developing the flow charts & data flow diagrams -audit reports -engagement letter -materiality economics: -micro -macro -game theory -econometric -mathematical application in economics -empirical macroeconomics -international trade -international political economy -monetary theory and policy -public economics ,business law, and all regarding commerce
4.00+
1+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Corporate Finance questions
-
A salesperson who sells an appliance to small businesses calls on 4 potential buyers every day. Based on historical information, the probability of making a sale is 12% for every potential buyer....
-
What is the effective annual cost if a firm issues $2.5 million face value of 90-day commercial paper for net proceeds of $2,450,000? The firm pays a standby fee of 0.05 percent on the face value.
-
What is the effective annual cost if a firm issues $10 million of 180-day BAs at a quoted rate of 6.5 percent, and the bank charges it a 0.5 percent stamping fee? Compare the effective annual cost of...
-
Where is the line in the sand the point where such behaviors are so destructive that you feel that the relationship needs to end?
-
Show that the acceleration of any object down a frictionless incline that makes an angle with the horizontal is a = g sin . 5 43 2 8 6 4 2 0
-
(a) Twelve rental payments of $1,000 will be paid monthly at the end of each month. The monthly interest rate is 0.01. What is the present value of the payments? (b) If the payments are at the...
-
Let \(D\) denote the event that you have the illness, and let \(S\) denote the event that the test signals positive. The probability requested can be denoted as \(P(D \mid S)\). The probability that...
-
New lithographic equipment, acquired at a cost of $800,000 at the beginning of a fiscal year, has an estimated useful life of five years and an estimated residual value of $90,000. The manager...
-
Lev and Gu are surprised that the structure and content of corporate annual reports have not changed between 1 9 0 2 and 2 0 1 2 . Why would one expect the accounting system to change over time? 2 -...
-
UDP header 05 31 00 0E 00 1A E3 11 what is the total length of UDP?
-
Assume the credit terms offered to your firm by your suppliers are 3/5, net 30. Calculate the cost of the trade credit if your firm does not take the discount and pays on day 30.
-
The Fast Reader Company supplies bulletin board services to numerous hotel chains nationwide. The owner of the firm is investigating the desirability of employing a billing firm to do her billing and...
-
How can blogs and Web casts enable companies to improve the effectiveness of their recruiting activities? What are the possible difficulties that can arise from reliance on these new technologies for...
-
In an attempt to streamline the ordering and invoicing process within your organization, all documents are now routinely formatted as read-only and cannot be edited. This is meant to secure the...
-
Rewrite the following sentences so that they are direct and concise. If necessary, break your answer into two sentences. a. Enraptured by the performance of the lead opera singer in the musical, Sir...
-
As the chief executive of a leading magazine, what are the four levels of introspection that you would expect from your editorial team in planning their messages?
-
As someone who came of age in the postemailworld of social networks and workgroup messaging, you were rather disappointed to find your new employer solidly stuck in the age of email. You use email,...
-
A software package your team created last month has just created errors in a clients files. This was because the client has incompatible file formats. How would you politely convey this to your...
-
MV Corporation has debt with market value of $100 million, common equity with a book value of $104 million, and preferred stock worth $21 million outstanding. Its common equity trades at $48 per...
-
If the annual fixed costs are 54,000 dinars, the occupation expense represents 20%, the contribution margin is 25%, and the unit selling price is 40 dinars. Required: Calculate the closing point of...
-
How many moles are present in 14.2 g hydrazine, N 2 H 4 ? Strategy Use the molar mass of N 2 H 4 as the conversion factor for the conversion of grams N 2 H 4 into moles N 2 H 4 .
-
What information do you need to compute the expected return of a portfolio?
-
You observe a portfolio for five years and determine that its average return is 12% and the standard deviation of its returns is 20%. Can you be 95% confident that this portfolio will not lose more...
-
Why is the risk of a portfolio usually less than the average risk of the stocks in the portfolio?
-
You are asked to choose a Website/ Web app/ Mobile app from any e-service/e-commerce provider. Explore the Website/Web app/Mobile app and identify the strengths (Note: you may compare the features...
-
Calculate return on equity (ROE) and its components using basic DuPont analysis. What do these ratios tell you about the company's performance and profit drivers? How do these ratios compare to the...
-
At the beginning of the year, Beck Company had total assets of $325,000 and total stockholders' equity of $105,000. If total assets increased by $50,000 during the year and total liabilities...
Study smarter with the SolutionInn App