Firms usually offer their customers some form of trade credit. This allowance comes with certain terms of credit, which will affect the actual cost of asset being sold for the buyer and the seller.

Consider this case: Cold Duck Manufacturing Inc. buys most of its raw materials from a single supplier. This supplier sells to Cold Duck on terms of 3/20, net 30.

The cost per period of the trade credit extended to Cold Duck is __________ (Note: Round all intermediate calculations to four decimal places, and your final answer to two decimal places.).

Cold Ducks trade credit has a nominal annual cost of ____________ , assuming a 365-day year. (Note: Round all intermediate calculations to four decimal places, and your final answer to two decimal places.)

If Cold Duck Manufacturing Inc.s supplier shortens its discount period to five days ______________, this will the cost of the trade credit.