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the other answers are all in percentages. please explain how u got the answers 5. Cost of trade credit Firms usually offer their customers some
the other answers are all in percentages. please explain how u got the answers
5. Cost of trade credit Firms usually offer their customers some form of trade credit. This allowance comes with certain terms of credit, which affect the cost of asset of sale for the buyer as well as the seller. Consider this case: Tasty Tuna Corporation buys most of its raw materials from a single supplier. This supplier sells to Tasty Tuna on terms of 3/10, net 45. The cost per period of the trade credit extended to Tasty Tuna, rounded to two decimal places, is, Tasty Tuna's trade credit has a nominal annual cost of , assuming a 365-day year. (Note: Round all intermediate calculations to four decimal places, and your final answer to two decimal places.) The effective annual rate (EAR) of the supplier's trade credit is decrease increase If Tasty Tuna Corporation's supplier shortens its discount period to five days, this will the cost of the trade credit Step by Step Solution
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