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Cost of trade credit. If a firm buys under terms of 3/15, net 50, but actually pays on the twenty day and still takes discount,
Cost of trade credit. If a firm buys under terms of 3/15, net 50, but actually pays on the twenty day and still takes discount, what is the nominal cost of its non free trade credit? Assume 365 days in cakculstions. Does it receive more or less credit that it would if it paid within 15 days?
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