Question
Mack Cosmetics buys $888,000 of materials (net of discounts) on terms of 5/12, net 50, and it currently pays on day 12 and takes the
Mack Cosmetics buys $888,000 of materials (net of discounts) on terms of 5/12, net 50, and it currently pays on day 12 and takes the discount.Mack plans to expand, and this will require additional financing.If Mack decides to forego discounts, what would the nominal percentage cost of its trade credit be, based upon a 365 day year?
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Contemporary Financial Management
Authors: R. Charles Moyer, James R. McGuigan, Ramesh P. Rao
14th edition
1337090581, 978-1337090582
