Question
Assume the credit terms offered to your firm by your suppliers are 3/5, net 60. Calculate the cost of the trade credit if your firm
Assume the credit terms offered to your firm by your suppliers are 3/5, net 60. Calculate the cost of the trade credit if your firm does not take the discount and pays on day 60.
(Hint: Use a365-day year.)
The cost of trade credit is (?)%. (Rounded to two decimalplaces.)
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Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
7th Edition
013213683X, 978-0132136839
