You place an order for 900 units of Good X at a unit price of $58. The

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You place an order for 900 units of Good X at a unit price of $58. The supplier offers terms of 1/25, net 40.

a. How long do you have to pay before the account is overdue? If you take the full period, how much should you remit?

b. What is the discount being offered? How quickly must you pay to get the discount? If you do take the discount, how much should you remit?

c. If you don’t take the discount, how much interest are you paying implicitly? How many days’ credit are you receiving?

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Essentials Of Corporate Finance

ISBN: 9780073405131

6th Edition

Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan

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Question Posted: Apr 24, 2012 07:54 AM

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You place an order for 900 units of Good X at a unit price of $58. The

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a There are 40 days until account is overdue If yo...View the full answer

Essentials Of Corporate Finance

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