Suppose a company uses trade credit with the terms of 2/10, net 50. If the company pays

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Suppose a company uses trade credit with the terms of 2/10, net 50. If the company pays its account on the 50th day, the effective borrowing cost of skipping the discount on Day 10 is closest to

a. 14.6 percent.

b. 14.9 percent.

c. 15.0 percent.

d. 20.2 percent.

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Fundamentals Of Corporate Finance

ISBN: 9781119795438

5th Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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