Question
1)Mavericks Cosmetics buys $3,276,921 of product (net of discounts) on terms of 6/10, net 60, and it currently pays on the 10th day and takes
1)Mavericks Cosmetics buys $3,276,921 of product (net of discounts) on terms of 6/10, net 60, and it currently pays on the 10th day and takes discounts. Mavericks plans to expand, and this will require additional financing. If Mavericks decides to forego discounts, what would the effective percentage cost of its trade credit be, based on a 365-day year?
Answer in % terms to 2 decimal places.
2)
Mahrouq Technologies buys $17,044,077 of materials (net of discounts) on terms of 2/30, net 60, and it currently pays within 30 days and takes discounts. Mahrouq plans to expand, and this will require additional financing. If Mahrouq decides to forego discounts and thus to obtain additional credit from its suppliers, calculate the nominal cost of that credit.
Answer in % terms to 2 decimal places (no % sign).
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