Nominal annual percentage cost of its non-free trade credit

Assignment Help Financial Management

Reference no: EM13941950

A firm buys on terms of 3/15, net 45. It does not take the discount, and it generally pays after 60 days. What is the nominal annual percentage cost of its non-free trade credit, based on a 365-day year? (Please show all work and formulas)

Reference no: EM13941950

Questions Cloud

What is the price of the stock in three months : A stock currently has a price of 1300. The price of a three month 1320-strike put is 81.41. The annual interest rate is 4% compounded continuously. Bob buys this put, and Rick enters into a long forward contract. In three months, Bob and Rick have th..

Bond makes annual coupon payments : Company just issued a 10 year 7% coupon bond. The face value of the bond is $1,000 and the bond makes annual coupon payments. If the required return on the bond is 10%, what is the bond’s price?

Effective interest rate of loan and the stated interest rate : Explain the difference, if any, between the effective interest rate of a loan and the stated interest rate. How do lenders safeguard against loans secured by accounts receivable? What are some of the common methods for banks to increase their return ..

Calculate expected return and standard deviation : Calculate Expected Return and Standard Deviation (please show how to do this on a calculator using STAT) Based on the following data, calculate the expected return and standard deviation of returns for EACH stock.

Nominal annual percentage cost of its non-free trade credit : A firm buys on terms of 3/15, net 45. It does not take the discount, and it generally pays after 60 days. What is the nominal annual percentage cost of its non-free trade credit, based on a 365-day year? (Please show all work and formulas)

Managerial accounting is a field of accounting : Managerial accounting is a field of accounting that provides economic information for external users

The perspective is that the tougher enforcement of drug : The perspective is that the tougher enforcement of drug laws for cocaine or other drug laws may actually increase the crime rate. Post your opinion using the concepts of demand, supply, and elasticity in your discussion.

Nventory conversion period : Data on Shin Inc. for 2008 are shown below, along with the inventory conversion period (ICP) of the firms against which it benchmarks. The firm's new CFO believes that the company could reduce its inventory enough to reduce its ICP to the benchmarks’..

The liabilities should be properly classified : The liabilities should be properly classified between current and long-term and appropriate note disclosure should be included.

User Account

All Pages