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Simmons Corporation can borrow from its bank at 20 percent to take a cash discount. The terms of the cash discount are 2.5/11, net 50.
Simmons Corporation can borrow from its bank at 20 percent to take a cash discount. The terms of the cash discount are 2.5/11, net 50. a. Compute the cost of not taking the cash discount. Note: 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? No Yes Step by Step Solution
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Financial Management For Technology Start Ups
Authors: Alnoor Bhimani
2nd Edition
1398603082, 978-1398603080
