a. If a firm buys under terms of 3/15, net 45, but actually pays on the 20th
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a. If a firm buys under terms of 3/15, net 45, but actually pays on the 20th day and still takes the discount, what is the nominal cost of its non-free trade credit?
b. Does it receive more or less credit than it would if it paid within 15 days?
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a Because the firm still takes the discount on Day 20 20 is ...View the full answer
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Related Book For
Financial management theory and practice
ISBN: 978-0324422696
12th Edition
Authors: Eugene F. Brigham and Michael C. Ehrhardt
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