Calculate the cost of the trade credit

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Reference no: EM132042697

1. For the P/E valuation model does current EPS mean the last reported EPS or should you find out todays EPS? and is projected growth of EPS just found by averaging out historical growth (say 5 years worth)?

2. Assume the credit terms offered to your firm by your suppliers are 2/10, net 45. Calculate the cost of the trade credit if your firm does not take the discount and pays on day 45. (Hint: Use a 365 -day year)

The cost of trade credit is _____%(Round to two decimal places)

Reference no: EM132042697

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