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a) A supplier has offered your company trade credit terms of 1/5, net 30. Interpret the worms of mark] b) Your company estimated the effective

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a) A supplier has offered your company trade credit terms of 1/5, net 30. Interpret the worms of mark] b) Your company estimated the effective annual rate offered by one of its suppliers to be 101... What does the EAR represent? The firm can obtain a bank loan at 8%EAR. As CFO, how would you advise the firm to pay this supplier? Explain. [2 marks] c) What is a currency forward contract? Why do multinational firms use such contracts? 3 marks) (Type your answer into the answer box, NOT into the Notes box, uploading file is NOT accepted -- A- B 1 U X2 x? = = ABC

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