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10. Cost of trade credit Aa Aa Firms usually offer their customers some form of trade credit. This allowance comes with certain terms of credit,
10. Cost of trade credit Aa Aa Firms usually offer their customers some form of trade credit. This allowance comes with certain terms of credit, which will affect the actual cost of asset being sold for the buyer and the seller. Consider this case: Tasty Tuna Corporation buys most of its raw materials from a single supplier. This supplier sells to Tasty Tuna on terms of 2.5/15, net 60 The cost per period of the trade credit extended to Tasty Tuna, rounded to two decimal places, is Tasty Tuna's trade credit has a nominal annual cost of intermediate calculations to four decimal places, and your final answer to two decimal places) assuming 365-day year.(Note: Round a If Tasty Tuna Corporation's supplier shortens its discount periad to five days, this will trade credit. the cost of the
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