Question
Your brother's start-up firm has been offered credit terms of 4/30, net 90 days. What will be the nominal annual percentage cost of its non-free
Your brother's start-up firm has been offered credit terms of 4/30, net 90 days. What will be the nominal annual percentage cost of its non-free trade credit if it pays 120 days after the purchase? (Assume a 365-day year.)
| 16.05% | ||
| 16.90% | ||
| 17.74% | ||
| 18.63% | ||
| 19.56% |
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Corporate Finance A Focused Approach
Authors: Michael C. Ehrhardt, Eugene F. Brigham
8th Edition
0357714636, 9780357714638
