Question
Principal Financial Group offers its customers payment terms of 2/10 EOM, net 70. Assuming 365 days in a year, calculate the implicit cost of trade
Principal Financial Group offers its customers payment terms of 2/10 EOM, net 70. Assuming 365 days in a year, calculate the implicit cost of trade credit (Do not round intermediate calculations. Round final answer to two decimal places).
A. 38.51%
B. none of the answers is correct.
C. 18.21%
D. 13.08%
E. 24.47%
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Introduction To Derivatives And Risk Management
Authors: Robert Brooks, Don M Chance, Roberts Brooks
8th Edition
0324601212, 9780324601213
