Your company has been offered credit terms on its purchases of 4/30, net 90 days. What will be the nominal annual cost of trade credit if your company pays on the 35th day after receiving the invoice? (Assume a 365-day year.) a. 30% b. 304% c. 3% d. 87% e. 156%
Your company has been offered credit terms on its purchases of 4/30, net 90 days. What will be the nominal annual cost of trade credit if your company pays on the 35th day after receiving the invoice? (Assume a 365-day year.) a. 30% b. 304% c. 3% d. 87% e. 156%
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter16: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 8P: Captain Whitman Ship Supplies offers terms of 3/15, net 45.
If a purchaser takes the discount and...
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Your company has been offered credit terms on its purchases of 4/30, net 90
days. What will be the nominal annual cost of trade credit if your company
pays on the 35th day after receiving the invoice? (Assume a 365-day year.)
a. 30%
b. 304%
c. 3%
d. 87%
e. 156%
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