Question
Little Kimi Clothiers can borrow from its bank at 13 percent to take a cash discount. The terms of the cash discount are 2/16 net
Little Kimi Clothiers can borrow from its bank at 13 percent to take a cash discount. The terms of the cash discount are 2/16 net 75.
a. Compute the cost of not taking the cash discount. (Use 365 days in a year. Do not round the intermediate calculations. Round the final answer to 2 decimal places.)
Cost of not taking a cash discount %
b. Should the firm borrow the funds?
-
Yes
-
No
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AI In The Financial Markets
Authors: Federico Cecconi
1st Edition
3031265173, 978-3031265174
