Question
Cost of Trade Credit What is the nominal and effective cost of trade credit under the credit terms of 1/15, net 30? Assume 365 days
Cost of Trade Credit
What is the nominal and effective cost of trade credit under the credit terms of 1/15, 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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Corporate Finance A Focused Approach
Authors: Michael C. Ehrhardt, Eugene F. Brigham
4th Edition
1439078084, 978-1439078082
