Question
Cost of Trade Credit What are the nominal and effective costs of trade credit under the credit terms of 3/10, net 30? Assume 365 days
Cost of Trade Credit
What are the nominal and effective costs of trade credit under the credit terms of 3/10, net 30? Assume 365 days in a year for your calculations. Round your answers to two decimal places. Do not round intermediate calculations.
Nominal cost of trade credit %
Effective cost of trade credit %
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Entrepreneurial Finance
Authors: J. Chris Leach, Ronald W. Melicher
6th edition
1305968352, 978-1337635653, 978-1305968356
