Question
Regis Clothiers can borrow from its bank at 12 percent to take a cash discount. The terms of the cash discount are 3/17, net 35.
- Regis Clothiers can borrow from its bank at 12 percent to take a cash discount. The terms of the cash discount are 3/17, net 35.
a.Compute the cost of not taking the cash discount.(Use a 360-day year. Do not round intermediate calculations. Input your final answer as a percent rounded to 2 decimal places.)
Cost of not taking a cash discount= %
2. Simmons Corp. can borrow from its bank at 19 percent to take a cash discount. The terms of the cash discount are 1.5/14, net 55.
a.Compute the cost of not taking the cash discount.(Use a 360-day year. Do not round intermediate calculations. Input your final answer as a percent rounded to 2 decimal places.)
Cost of not taking a cash discount= %
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Financial Management Core Concepts
Authors: Raymond M Brooks
3rd edition
133866696, 978-0133866698
