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DuBois Cosmetics buys $650,000 of materials (net of discounts) on terms of 3/15, net 45, and it currently pays on day 15 and takes the
DuBois Cosmetics buys $650,000 of materials (net of discounts) on terms of 3/15, net 45, and it currently pays on day 15 and takes the discount. DuBois plans to expand, and this will require additional financing. If DuBois decides to forego discounts, what would the nominal percentage cost of its trade credit be, based upon a 365 day year?
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