1. Core Co. needs to raise more capital because its business is booming. The company purchases supplies on terms of 2/10 net 30, and it currently takes the discount. One way of getting the needed funds would be to forgo the discount, and the firm's owner believes she could delay payment to 40 days without adverse effects. As a result of this action, its nominal cost of trade is _____ than its effective cost of trade by _______. *

5 points

a. More, 3.03%

b. Less; 3.03%

c. More; 7.34%

d. Less; 7.34%

e. None of the above