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Firms usually offor their customers some form of trade credit. This allowance comes with certain terms of credit, which will affect the sctual cost of

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Firms usually offor their customers some form of trade credit. This allowance comes with certain terms of credit, which will affect the sctual cost of asset being sold for the buyer and the seller. Consider this case: Cold Duck Manufocturing Inc. buys most of its raw materials from a single supplier. This suppller sells to Cold Duck on terms of 2.5/15. net 45 . The cost per periad of the trade credit extanded to Cold Duck is (Note: Round all intermediate calculations to four decimal places, and your final answer to two decimal places.). Cold Duck's trode credit hes a naminal annusl cost of 1, aswuming a 365-day year, (Note: Round ail intermediate calculations to four decimal places, and your final answer to two decimal plices.) the cost of the trade credit

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