Question
Simmons Corp. can borrow from its bank at 20 percent to take a cash discount. The terms of the cash discount are 1.5/17, net 60.
Simmons Corp. can borrow from its bank at 20 percent to take a cash discount. The terms of the cash discount are 1.5/17, net 60.
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.)
b. Should the firm borrow the funds? Yes-No
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Financial Management for Public Health and Not for Profit Organizations
Authors: Steven A. Finkler, Thad Calabrese
4th edition
133060411, 132805669, 9780133060416, 978-0132805667
