Advantage of the trade discount offered

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Reference no: EM131572751

1. Your firm purchases goods from its supplier on terms of 1/10, net 30. The effective annual cost to your firm if it chooses not to take advantage of the trade discount offered and stretches the accounts payable to 45 days is closest to:

A. 13.0%

B. 11.1%

C. 15.9%

D. 20.1%

2. With perfect capital markets, changes in the capital structure of a firm do not cause changes in the overall required rate of return of the firm.

True

False

Reference no: EM131572751

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