6. 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: Free Spirit Industries Inc. buys most of its raw materials from a single supplier. This supplier sells to Free Spirit on terms of 2/20, net 30 The cost per period of the trade credit extended to Free Spirit, rounded to two decimal places, is Free Spirit's trade credit has a nominal annual cost of intermediate calculations to four decimal places, and your final answer to two decimal places.) , assuming a 365-day year. (Note: Round all The effective annual rate (EAR) of the supplier's trade credit is If Free Spirit Industries Inc.'s supplier shortens its discount period to five days, this will trade credit. the cost of the 6. 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: Free Spirit Industries Inc. buys most of its raw materials from a single supplier. This supplier sells to Free Spirit on terms of 2/20, net 30 The cost per period of the trade credit extended to Free Spirit, rounded to two decimal places, is Free Spirit's trade credit has a nominal annual cost of intermediate calculations to four decimal places, and your final answer to two decimal places.) , assuming a 365-day year. (Note: Round all The effective annual rate (EAR) of the supplier's trade credit is If Free Spirit Industries Inc.'s supplier shortens its discount period to five days, this will trade credit. the cost of the