Cash Poor, Inc. (CPI) buys on terms of 2/10, net 45. CPI does not take the discount,
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Cash Poor, Inc. (CPI) buys on terms of 2/10, net 45. CPI does not take the discount, and it generally pays after 50 days. What is the nominal annual percentage cost of its non–free trade credit, based on a 365–day year? Enter your answer rounded to two decimal places. Do not enter % in the answer box. For example, if your answer is 0.12345 or 12.345% then enter as 12.35 in the answer box.
Related Book For
Financial Management Theory and Practice
ISBN: 978-0176517304
2nd Canadian edition
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
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