Large retailer obtains merchandise under the credit terms

Assignment Help Financial Management

Reference no: EM13895562

A large retailer obtains merchandise under the credit terms of 1/10, net 35, but routinely takes 70 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.

Reference no: EM13895562

Questions Cloud

Diversification occurs when stocks with low correlations : Diversification occurs when stocks with low correlations of returns are placed together in a portfolio. Identify at least one type of firm that might exhibit low correlations of returns with the overall stock market? Explain why the correlations of t..

Make the break-even point increase : All of the following will make the break-even point increase, other things equal, EXCEPT

Compute the average annual cash inflows : Compute the average annual cash inflows

How is net present value profile used to compare projects : How is a net present value profile used to compare projects? What causes conflict in the ranking of projects via net present value and internal rate of return? Does the assumption concerning the reinvestment of intermediate cash inflows tend to favor..

Large retailer obtains merchandise under the credit terms : A large retailer obtains merchandise under the credit terms of 1/10, net 35, but routinely takes 70 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 e..

Rhetorical analysis paper - showtimes the affair : Rhetorical Analysis paper! 10-14 pages! Artifact topic: Showtimes "The Affair". What culutral problem is the show a response to or why the show has evolved

Discuss reflexivity and researcher voice : Discuss reflexivity and researcher's voice, as they pertain to grounded theory (constructivist) research.

Compute the bonds current yield and yield to call : A 4.85 percent coupon municipal bond has 22 years left to maturity and has a price quote of 103.70. The bond can be called in eight years. The call premium is one year of coupon payments. Compute the bond’s current yield. Compute the yield to call.

Experiences of early childhood educators : Currently working on a study relative to attitudes, beliefs based on lived experiences of early childhood educators and how it impacts their encouragement of involvement with fathers in their program.

User Account

All Pages