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PROBLEM 5 Suppose one of the suppliers to Seattle Health System offers terms of 3/20, net 60. a. When does the system have to pay
| PROBLEM 5 | ||||||||||
| Suppose one of the suppliers to Seattle Health System offers terms of 3/20, net 60. | ||||||||||
| a. When does the system have to pay its bills from this supplier? | ||||||||||
| b. What is the approximate percentage cost of the costly trade credit offered by this supplier? (Assume | ||||||||||
| 360 days per year.) | ||||||||||
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Contemporary Quantitative Finance
Authors: Carl Chiarella, Alexander Novikov
2010th Edition
3642034780, 978-3642034787
