Question
If a firm buys on trade credit terms of 5/15, net 60 and decides to forgo the trade credit discount and pay on the netday,
If a firm buys on trade credit terms of 5/15, net 60 and decides to forgo the trade credit discount and pay on the netday, what is the annualized cost of forgoing the discount(assume a365-day year)?
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Financial Management Principles and Applications
Authors: Sheridan Titman, Arthur Keown, John Martin
12th edition
133423824, 978-0133423822
