What are the nominal and effective costs of trade credit under the credit terms of 3/20, net

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What are the nominal and effective costs of trade credit under the credit terms of 3/20, net 40? Assume a 365-day year. Do not round intermediate calculations. Round your answers to two decimal places.

Nominal cost of trade credit: %

Effective cost of trade credit: %

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Corporate Finance A Focused Approach

ISBN: 978-1305637108

6th edition

Authors: Michael C. Ehrhardt, Eugene F. Brigham

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Posted Date: Feb 26, 2021 11:41 AM

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What are the nominal and effective costs of trade credit under the credit terms of 3/20, net

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Nominal cost discount rate100discount rate x 365full paymen... View the full answer

Corporate Finance A Focused Approach

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