### What is the retailer effective cost of trade credit

Assignment Help Finance Basics
##### Reference no: EM132234816

A large retailer obtains merchandise under the credit terms of 2/15, net 45, but routinely takes 55 days to pay its bills. (Because the retailer is an important customer, suppliers allow the firm to stretch its credit terms.) What is the retailer's effective cost of trade credit? Assume 365 days in year for your calculations. Do not round intermediate calculations. Round your answer to two decimal places.

#### What should inventory level be when a new order is placed

It takes approximately 4 day(s) to receive an order after it has been placed. If the store insists on a 6 day(s) safety stock (assume 365-days a year), what should the inven

#### Liquidation value of firms equity could exceed market value

The book value of a firm's common equity is usually lower than the market value of the common stock. Why? Can you describe a situation in which the liquidation value of a fi

#### Explain the reason for the different cases

The purchase of a patent from an inventor that gives the business the right to produce a new product. Production of the new product is expected to increase profits over the

#### How much is the dividend expected

Last year, Company A paid an annual dividend of \$2.50 per share. The company recently announced that it will be increasing its dividend by 10 percent, 8 percent, and 6 perce

#### Which system should the firm chose

Both systems are to be depreciated straight-line to zero over their lives and will have zero salvage value. Whichever system is chosen, it will not be replaced when it wears

#### What is the yield to maturity on these bonds

Rockinghouse Corp. plans to issue seven-year zero coupon bonds. It has learned that these bonds will sell today at a price of \$402.35. Assuming annual coupon payments, what

#### Compute the amount in the bonus pool

Briefly describe why a company would institute a bonus plan, and compute the amount in the bonus pool if Jordan Brothers shows net income of \$300,000. Prepare the journal en

#### How has this changed over the past fifty years

How does the fraction of NASDAQ-listed companies that regularly pay cash dividends compare with the fraction of NYSE-listed firms that do the same? What accounts for this di