A company buys on terms of 2/12, net 28. What is its nominal cost of trade credit?

Question:

A company buys on terms of 2/12, net 28. What is its nominal cost of trade credit? (46.6%) The effective cost?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Intermediate Financial Management

ISBN: 9781337395083

13th Edition

Authors: Eugene F. Brigham, Phillip R. Daves

See More Books

Question Posted: Mar 10, 2024 12:01 AM

See More Questions

Dan Barnes, financial manager of Ski Equipment Inc. (SKI), is excited, but apprehensive. The companys founder recently sold his 51% controlling block of stock to Kent Koren, who is a big fan of EVA...
Malone Feed and Supply Company buys on terms of 1/10, net 30, but it has not been taking discounts and has actually been paying in 60 rather than 30 days. Assume that the accounts payable are...
Malone Feed and Supply Company buys on terms of 1/10, net 30, but it has not been taking discounts and has actually been paying in 60 rather than 30 days. Assume that the accounts payable are...
Power Company acquired 80 percent of Solar Company's outstanding common stock for $200,000 cash on January 2, 2021. The two companies continued to operate as separate entities after the combination....
A house has a volume of 1200 m3. (a) What is the total mass of air inside the house at 15C? (b) If the temperature drops to - 15C, what mass of air enters or leaves the house?
Let \(\Pi=\left\{0=t_{0}
Why does collusion pose unique prevention and detection challenges?
List six drawbacks of using only subjective information in formulating strategies.
5. If you were to connect an ammeter to measure current in the circuit at points A, B, and C how would the readings compare? (Do not connect ammeter yet) Explain the reasoning for your prediction....
How could the cash budget be used when negotiating the terms of a bank loan?
How does the cost of costly trade credit generally compare with the cost of short-term bank loans?
Suppose you leave a 110 W television and two 100 W light- bulbs on in your house to scare off burglars while you go out dancing. If the cost of electric energy in your town is $0.12/kWh and you stay...
Identify a company reputed to have a strong and positive culture. What is attractive about this company's culture? (5 marks) How is it sustained and to what extend is it a competitive advantage? (5...
55. A dam is used to hold back a river. The dam has a height H = 12 m and a width W = 10 m. Assume that the density of the water is p = 1000 kg/m. (a) Determine the net force on the dam. (b) Why does...
A manufacturing company is considering taking out a loan to expand its production line. To finance this expansion, the company plans to make equal annual payments over the term of the loan. The terms...
A 12 gram bullet strikes a 2.2-kg ballistic pendulum and remains stuck there. The center of mass of the pendulum rises a vertical distance of 12 cm. Calculate the speed at which the bullet strikes...
A 2 0 0 0 Hz sound wave passes through a wall with two narrow openings 3 0 cm apart. If sound travels on average 3 4 3 m / s , find the following. What is the angle of the first order maximum? ( b )...
A square plate of pure aluminum 0.5 m on a side and 16 mm thick is initially at 300C and is suspended in a large chamber. The walls of the chamber are maintained at 27C, as is the enclosed air. If...
Chloroplasts are illuminated until the levels of the Calvin cycle intermediates reach a steady state. The light is then turned off. How does the level of RuBP vary after this point?
Should health care be considered a public, private, or common good?
If you were responsible for placing an older family member in an assisted living community, would you prefer to select one that is nonprofit or one managed by a for-profit company? Or would it not...
Read the article, Preserving the Publicness of the Nonprofit Sector: Resources, Roles, and Public Values by Stephanie Moulton and Adam Eckerd. (See Articles.) Explain the Nonprofit Role Index and how...
3. If a proton is launched at a 2.0mm glass sphere with a velocity of 2.0 107 m/s, how might the sphere be charged such that the proton just makes it to its surface.
1. A hollow conducting sphere has an inner and outer radius of R and R2 respectively. A point charge of +Q sits inside the hollow sphere at the center. Additionally, a charge of +2Q is distributed...
Activity 1 Response: Measure the temperature of the environment (ambient temperature), the human body (both forehead and under the tongue), and two other objects in the room. Record this information...

A company buys on terms of 2/12, net 28. What is its nominal cost of trade credit?

Question:

Step by Step Answer:

To calculate the nominal cost of trade credit we first need to find the cost of not taking the disco...View the full answer

Intermediate Financial Management

Students also viewed these Business questions