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4. Cost of trade credit Firms usually offer their customers some form of trade credit. This allowance comes with certain terms of credit, which will

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4. Cost of trade credit 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: Cold Duck Manufacturing Inc. buys most of its raw materials from a single supplier. This supplier sells to Cold Duck on terms of 2.5/15, net 30. (Note: Round all intermediate calculations to four decimal places, and The cost per period of the trade credit extended to Cold Duck is your final answer to two decimal places.). 2.56% 2.15% ming a 365-day year. (Note: Round all intermediate calculations to four Cold Duck's trade credit has a nominal annual cost of decimal places, and your final answer to two decimal places.) 2.25% If Cold Duck Manufacturing Inc.'s supplier shortens its discount 2.05% five days, this will the cost of the trade credit. 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: Cold Duck Manufacturing Inc. buys most of its raw materials from a single supplier. This supplier sells to Cold Duck on terms of 2.5/15, net 30. 62.29% 43.60% (Note: Round all intermediate calculations to four decimal places, and The cost per period of the trade credit extended to Co 56.06% your final answer to two decimal places.). 51.70% , assuming a 365-day year. (Note: Round all intermediate calculations to four Cold Duck's trade credit has a nominal annual cost of decimal places, and your final answer to two decimal places.) If Cold Duck Manufacturing Inc.'s supplier shortens its discount period to five days, this will the cost of the trade credit. 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: Cold Duck Manufacturing Inc. buys most of its raw materials from a single supplier. This supplier sells to Cold Duck on terms of 2.5/15, net 30. (Note: Round all intermediate calculations to four decimal places, and The cost per period of the trade credit extended to Cold Duck is your final answer to two decimal places.). assuming a 365-day decrease Round all intermediate calculations to four Cold Duck's trade credit has a nominal annual cost of decimal places, and your final answer to two decimal places.) increase If Cold Duck Manufacturing Inc.'s supplier shortens its discount period to five days, this will the cost of the trade credit

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