Question
A firm currently offers terms of sales 3/20 net 40.What effect will the following actions have on the implicit interest rate charged to customers that
A firm currently offers terms of sales 3/20 net 40.What effect will the following actions have on the implicit interest rate charged to customers that pass up the cash discount?Will the implicit interest rate increase or decrease?
a) the terms are changed to 4/20 net 40
b) the terms are changed to 3/30 net 40
c) the terms are changed to 3/20 net 30.
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Gordon Roberts, Hamdi Driss
8th Canadian Edition
01259270114, 9781259270116
