Supplier offers terms-what is the discount being offered
Course:- Financial Management
Reference No.:- EM13943015

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Financial Management

You place an order for 2,100 units of Good X at a unit price of $58. The supplier offers terms of 1/30, net 35.

Requirement 1. How long do you have to pay before the account is overdue? (b) If you take the full period, how much should you remit?

Requirement 2: (a) What is the discount being offered? (b) How quickly must you pay to get the discount? c) If you do take the discount, how much should you remit?

Requirement 3: (a) If you don’t take the discount, how much interest are you paying implicitly? Implicit interest $ (b) How many days’ credit are you receiving?

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Financial Management) Materials
The dividend of Quarry, Inc. is currently $4 per share and is expected to grow at 5 percent per year forever. Its share price is $60. Its beta is 1.30. The market risk premium
To finance some manufacturing tools it needs for the next 4 years, Waldrop Corporation is considering a leasing arrangement. Waldrop Corporation has no use for the machine bey
What is meant by when someone talked about the time value of money with his/her managers? Can you think of an example in your own work history or something you've read about w
The ABC Co. earned $10 million before interest and taxes on revenue of $60 million last year. Investment in fixed capital was $12 million, and depreciation was $8 million. Aft
Stock R has a beta of 1.4, Stock S has a beta of 0.75, the expected rate of return on an average stock is 13%, and the risk-free rate is 5%. By how much does the required retu
Assume the current Treasury yield curve shows that the spot rates six months, one year, and one and a half years are 1%, 1.1% and 1.3%, all quoted as semi annually compounded
Please discuss. The financial institutions in the USA that received bailout money improved their profitability. Did the tax payers receive the appropriate return on their inve
A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of return is rs=10.5%, and the expected constant growth rate is g=6.4%. What is the st