Given the price of $ 6 0 and credit term, 3 / 1 0 net 4 5

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Question:

Given the price of $

60

and credit term,

3 / 10

net

45,

please find the annualized cost of financing if you choose to pay invoice within

45

days. How much is your effective annual rate of cost

?

Related Book For answer-question

Fundamentals of Corporate Finance

ISBN: 978-0132148238

2nd edition

Authors: Berk, DeMarzo, Harford

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Posted Date: May 18, 2024 03:19 PM

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Given the price of $ 6 0 and credit term, 3 / 1 0 net 4 5

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Expert Answer:

Fundamentals of Corporate Finance

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