User Account

All Pages

What is the effective annual interest of trade credit

Assignment Help Finance Basics
Reference no: EM131103518

The D.J. Masson Corporation needs to raise $500,000 for 1 year to supply working capital to a new store. Masson buys from its suppliers on terms of 3/10, net 90, and it currently pays on the 10th day and takes discounts, but it could forgo discounts, pay on the 90th day, and get the needed $500,000 in the form of costly trade credit. What is the effective annual interest rate of the costly trade credit?

Reference no: EM131103518

Questions Cloud

The expected return on equity under each current asset level : What is the expected return on equity under each current asset level? (Assume a 40 percent effective federal-plus-state tax rate.) b. In this problem, we have assumed that the level of expected sales is independent of current asset policy. Is this a ..
Describe briefly the following characteristics : Describe briefly the following characteristics of useful accounting information.
Calculate christie''s cash conversion cycle : Calculate Christie's cash conversion cycle. Assuming Christie holds negligible amounts of cash and marketable securities, calculate its total assets turnover and ROA. Suppose Christie's managers believe that the inventory turnover can be raised to 7...
What is the length of the firm''s cash conversion cycle : The Zocco Corporation has an inventory conversion period of 75 days, a receivables collection period of 38 days, and a payables deferral period of 30 days.a. What is the length of the firm's cash conversion cycle?
What is the effective annual interest of trade credit : The D.J. Masson Corporation needs to raise $500,000 for 1 year to supply working capital to a new store. Masson buys from its suppliers on terms of 3/10, net 90, and it currently pays on the 10th day and takes discounts, but it could forgo discounts,..
What is the minimum on-resistance that can be achieved : what is the minimum on-resistance that can be achieved with W/L = 20?
Effect of temperature on the rate of chemical change : When it comes to combustion, why is it important to understand the phases of a fuel (whether the fuel is in the gas, liquid or a solid) important?
Determine the trans-conductance of such a device : where vsat is a relatively constant velocity. Determine the trans-conductance of such a device.
Why human resource is necessary : Give reasons why human resource is necessary to all managers in an organization

Reviews

Write a Review

Finance Basics Questions & Answers

  Reba mc entire wishes to invest 19000 on july 1 2011 and

reba mc entire wishes to invest 19000 on july 1 2011 and have it accumulate to 49000 by july 1 2021. use a financial

  Crimes to the banks and proper authorities

What would you do in this situation? Is the fact that you correctly refused to produce and sign a false memo enough, or are you obligated to report these crimes to the banks and proper authorities?

  What is the company''s required return

At age 25 you invest $2,000 that earns 6 percent each year. At age 35 you invest $2,000 that earns 9 percent per year. In which case would you have more money at age 60?

  What is the expiration value of clayton warrants

What is the expiration value of Clayton's warrants if the common stock is currently selling at $20 per share? Please show the method of arriving at the answer.

  What do you think the ex-dividend price will be

Dark Day sells for $93.85 per share, and the stock is about to go ex dividend. What do you think the ex-dividend price will be?

  Find the expected rate of return for mason common stock

Mason Corp. paid a dividend of $1.85 per share last quarter on its common stock. The company's stock is currently selling for $88.45 per share, and the growth rate in dividends is 6%. Find the expected rate of return for Mason common stock.

  What would be recorded in the common stock account

What would be recorded in the common stock account on the balance sheet if 20,000 shares are issued at a par value of $2 and the market value is $5?

  The financial statements a for-profit organization

Please identify four of the financial statements a for-profit organization will compile, define them, and then describe how they interact with each other.

  Financial manager of a furniture manufacture

Anne Teak, the financial manager of a furniture manufacturer, is considering opening a lock-box system.  She forecasts that 800 payments a day will be made to lock boxes with an average payment size of $2,000.  The bank's charge for operating the loc..

  Find the value of a bond with the following charateristics

find the value of a bond with the following charateristics face value of 1000 8 coupon rate the bond matures in 15

  Important part of developing and implementing a strategy

Understanding supply chain and how the consumer can play a critical role in the supply chain is an important part of developing and implementing a strategy.

  Real gdp for fish and chips

The Republic of Republic produces two goods/services, fish (F) and chips (C). In 2006, the 2000 units of F produced sold for $5 per unit and the 5000 units of C produced sold for $2 per unit.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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