Question
Ruby Bhd., is being offered the terms of sale of 1/7, net 21 by a supplier. (a) What is the EAR of the cost to
Ruby Bhd., is being offered the terms of sale of 1/7, net 21 by a supplier.
(a) What is the EAR of the cost to Ruby Bhd., if the offered credit is taken up?
(b) If Ruby Bhd., can borrow short-term funds from a bank at the EAR interest rate of 9%, what should Ruby Bhd., do? Explain briefly.
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Entrepreneurial Finance
Authors: Gary E. Gibbons, Robert D. Hisrich, Carlos Marques DaSilva
1st Edition
1452274177, 978-1452274171
