What effective annual interest rate does the firm earn

Assignment Help Finance Basics
Reference no: EM13289499

A firm offers terms of 2/5, net 30. What effective annual interest rate does the firm earn when a customer does not take the discount?

A-28.97 percent
B-31.08 percent
C-34.31 percent
D-24.42 percent
E-21.69 percent

 

Reference no: EM13289499

Questions Cloud

Explain the temperature of the sodium is not to increase : Liquid sodium is being considered as an engine coolant. How many grams of liquid sodium (minimum) are needed to absorb 4.00 MJ of energy (in the form of heat) if the temperature of the sodium is not to increase by more than 10.0 °C? Use CP = 30.8 ..
Find the angular width of the central diffraction maximum : A beam of laser light with a wavelenth of ? = 690.00 nm passes through a circular aperture of diameter a = 0.133 mm. What is the angular width of the central diffraction maximum
What should the identical set of clubs : A particular set of golf clubs in the U.S. costs $990. According to absolute purchasing power parity, what should the identical set of clubs cost in the U.K. when the spot rate is £0.6703 = $1?
Plot the input and output constant-gain circles : Design an amplifier for a power gain of 15dB at 3 GHz if 1. Plot the input and output constant-Gain circles. 2. Find the input and output matching networks. use L C components.
What effective annual interest rate does the firm earn : A firm offers terms of 2/5, net 30. What effective annual interest rate does the firm earn when a customer does not take the discount?
What is the specific heat of the gas : An 80.0-gram sample of a gas was heated from 25 °C to 225 °C. During this process, 346 J of work was done by the system and its internal energy increased by 6275 J. What is the specific heat of the gas?
Calculate the minimum value of the index of refraction : A glass sheet 1.10 ?m thick is suspended in air. Calculate the minimum value of the index of refraction of the glass sheet that produces this effect
What is the cross rate in terms of swiss francs per euro : Suppose the Swiss franc exchange rate is Sf1.1426 = $1, and the euro exchange rate is €0.7538 = $1. What is the cross rate in terms of Swiss francs per euro?
Design a digital notch filter to reject frequency : Design a digital notch filter to reject frequency 5 kHz completelyand to have a sharp recovery on either side of 5 kHz to a gain ofunity. The highest frequency to be processed is 20 kHz.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the cause of jack frustration

At what point in the design phase should the assessment be designed and why?

  What is the economic order quantity

Jones surgicenter uses 90,000 bags of IV solution annually. The optimal safety stock (which is on hand initially) is 1,000 bags. Each bags costs the center $1.50, inventory carrying costs are 20 percent, and the cost of placing an order with it su..

  Risk of finance-portfolio-investments

What are unique risks associated with foreign investments? How might an investor protect his/her portfolio against these risks? Is it possible to protect a portfolio from all types of risk? Explain your answer.

  Which short-run exposure to exchange rate risk is best

Short-run exposure to exchange rate risk is best illustrated by which one of the following?

  Compute the sales tax

Suppose you are shopping for office supplies and furnishings for your corporation, Financial Outsourcing, Corporation Use the comparative shopping web search engines in the Library to conduct the following research.

  Why might a financial lease be especially attractive

To support your growth, you need to purchase some long-term fixed assets. You are considering whether to buy or lease. Why might a financial lease be especially attractive for your situation?

  Treasury bond interest rates

Assume you own the 8% October 2008 treasury bond and it is expected that the market interest rate will increase from 8% to 9% in the next three months.

  Increase the informativeness of the prospecting

The firm now has the option of investing $20 million in developing a new seismic test which will increase the informativeness of the prospecting.

  Computation of interest expenses

Computation of interest expenses at required combined leverage and if the firm has no preferred stock and what are its annual interest charges

  What is the value of the option to delay one period

These two possibilities are equally like. If you wait, the true outcome will be appraent in period 1, at the expense of a one period delay for all cash-flows. What is the value of the option to delay one period?

  Evaluate the project on a pre-tax basis

what is the NPV of this project, assuming that you should evaluate the project on a pre-tax basis?

  Compare past and current management approaches

Describe how the company was managed in the past. Compare difference between management approaches in the past to those the organization currently uses.

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!

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