Annual percentage cost of its non-free trade credit

Assignment Help Finance Basics
Reference no: EM13540765

MKMI Water Supply purchases $1billion in goods per year from its sole supplier on terms of 5/15, net 45. If the firm chooses to pay on time (on the last day) but does not take the discount, what is the effective annual percentage cost of its non-free trade credit (assume a 365-day year).

Reference no: EM13540765

Questions Cloud

Define the ph of the original hno3 solution : 280 mL of an HCl solution with pH of 3.10 is added to 200 mL of an HNO3 solution. The resulting pH is 1.4. What was the pH of the original HNO3 solution.
Evaluate the kinetic energy of rotation : A cylinder of mass 6.6 kg and radius 0.10 m rolls along a level floor. Its center of mass has a speed of 0.8 m/s. Find the kinetic energy of rotation
Explain a sulfur atom to form magnesium sulfide : Consider the reaction between a magnesium atom and a sulfur atom to form magnesium sulfide. Would you expect this reaction to be exothermic or endothermic. Explain
Determine how far away from you is this car : Late one night on a highway, a car speeds by you and fades into the distance. Under these conditions the pupils of your eyes have diameters of about 7.1 mm. How far away from you is this car
Annual percentage cost of its non-free trade credit : MKMI Water Supply purchases $1billion in goods per year from its sole supplier on terms of 5/15, net 45. If the firm chooses to pay on time (on the last day) but does not take the discount, what is the effective annual percentage cost of its no..
Evaluate the molar mass of the unknown compound : The freezing point of a solution of 0.10 g of an unknown compound in 5.640 g of camphor (Kf = 37.7 degrees C/m) is 2.1 degrees C lower than the freezing point of pure camphor. Calculate the molar mass of the unknown compound assuming it is a non-e..
Calculate what is the angular speed of the cylinder : A uniform cylinder of radius 11.8 cm and mass 28.1 kg is mounted so as to rotate freely about a horizontal axis that is parallel to and 5.90 cm from the central longitudinal axis of the cylinder. calculate what is the angular speed of the cylinder
Find the percentage increase of the frequency : A piano string is so badly out of tune that the tension must be increased by 10%. Find the percentage increase of the frequency
What is the current share price : Great Pumpkin Farms just paid a dividend of $3.30 on its stock. The growth rate in dividends is expected to be a constant 6 percent per year indefinitely. Investors require a return of 15 percent for the first three years, a return of 13 perce..

Reviews

Write a Review

 

Finance Basics Questions & Answers

  Castles in the sand issued bonds at face value at a yielf

castles in the sand issued bonds at face value at a yielf to maturity of 7. now with 8 years left until the maturity of

  What is the correct price of an american put

A stock priced at 50 can go up or down by 10 percent over two periods. The risk-free rate is 4 percent. What is the correct price of an American put with an exercise price of 55?

  What is madison weighted average cost of capital

As president of Madison Corp. your finance people tell you that Madison is 30% debt and 70% common stock. In addition they tell you the cost of the common stock is 11% and the cost of the debt is 5.0%. What is Madison's weighted average cost of ca..

  1 compute the present value of a two-period annuity of 1

1. compute the present value of a two-period annuity of 1 per period if the discount rate is 10 percent.2. a two-period

  Bond x is a premium bond making semiannual payments the

bond x is a premium bond making semiannual payments. the bond pays a 9 percent coupon has a ytm of 7 percent and has 13

  Show the range in the npvs for each variable and chart

Show the range in the NPVs for each variable and chart the analysis. Which variable has the highest risk and which variable has the lowest risk? Explain.

  Calculate the cost of internal equity for alpha tool

This annual dividend growth rate is expected to decline to 8 percent for years 3 and 4 and then to settle down to 4 percent per year forever. Calculate the cost of internal equity for Alpha Tool.

  Calculate the current yield on this bond

What dollar amount of interest will he receive from this bond every six months? Explain or show work.

  Two mutually exclusive investments cost 10000 each and have

two mutually exclusive investments cost 10000 each and have the following cash inflows. the firmrsquos cost of capital

  A you have accumulated data on three stocks see below you

a. you have accumulated data on three stocks see below. you have decided to use the information on these stocks to form

  Write a multiple regression equation

Write a multiple regression equation that can be used to analyze the data for a two-factorial design with two levels for factor A and three levels for factor B. Define all variables please.

  Barclay capital edge over competitors

Describe a recent development in the Investment Banking industry. What implications might this development have for the Business Analysis Department where you intend to join?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd