Question
Little Kimi Clothiers can borrow from its bank at 15 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 15 percent to take a cash discount. The terms of the cash discount are 2/16 net 90.
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 nottaking a cashdiscount %
b.Should the firm borrow the funds?
- Yes
- No
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Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
7th Edition
013213683X, 978-0132136839
