Question
Little Kimi Clothiers can borrow from its bank at 19 percent to take a cash discount. The terms of the cash discount are 3/10 net
Little Kimi Clothiers can borrow from its bank at 19 percent to take a cash discount. The terms of the cash discount are 3/10 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
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No
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Principles Of Finance With Excel
Authors: Simon Benninga, Tal Mofkadi
3rd Edition
0190296380, 9780190296384
