Mahrouq Technologies buys $13,431,550 of materials (net of discounts) on terms of 4/30, net 60, and it currently pays after 5 days and takes discounts. Mahrouq plans to expand, and this will require additional financing. If Mahrouq decides to forego discounts and thus to obtain additional credit from its suppliers, calculate the nominal cost of that credit. Answer in % terms to 2 decimal places (no % sign).
Mahrouq Technologies buys $13,431,550 of materials (net of discounts) on terms of 4/30, net 60, and it currently pays after 5 days and takes discounts. Mahrouq plans to expand, and this will require additional financing. If Mahrouq decides to forego discounts and thus to obtain additional credit from its suppliers, calculate the nominal cost of that credit. Answer in % terms to 2 decimal places (no % sign).
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter21: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 10MC
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Mahrouq Technologies buys $13,431,550 of materials (net of discounts) on terms of 4/30, net 60, and it currently pays after 5 days and takes discounts. Mahrouq plans to expand, and this will require additional financing. If Mahrouq decides to forego discounts and thus to obtain additional credit from its suppliers, calculate the nominal cost of that credit.
Answer in % terms to 2 decimal places (no % sign).
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