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

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

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Intermediate Financial Management

ISBN: 9781337395083

13th Edition

Authors: Eugene F. Brigham, Phillip R. Daves

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Question Posted: Mar 10, 2024 12:01 AM

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

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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

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