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ToyCorp. is offered terms of 2/15, net 50 by one of its suppliers. The company decides not to take the discount, and it generally pays
- ToyCorp. is offered terms of 2/15, net 50 by one of its suppliers. The company decides not to take the discount, and it generally pays after 60 days. Assuming the company purchases $5.5 million worth of inventory, what is the effective annual percentage cost of its non-free trade credit ( assume a 365-day year)?
The answer is 23.45%. Will you show the work?
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
