Suppose a company uses trade credit with the terms of 2/10, net 50. If the company pays

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Suppose a company uses trade credit with the terms of 2/10, net 50. If the company pays their account on the 50th day, the effective borrowing cost of skipping the discount on day 10 is closest to

a. 14.6 percent.

b. 14.9 percent.

c. 15.0 percent.

d. 20.2 percent

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Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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Question Posted: Jun 12, 2012 01:13 AM

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Suppose a company uses trade credit with the terms of 2/10, net 50. If the company pays

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Fundamentals of corporate finance

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