Solution-Cost of trade credit, A large retailer obtains

Cost of trade credit

Reference no: EM132807169

Cost of Trade Credit

A large retailer obtains merchandise under the credit terms of 1/20, net 30, 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 a 365-day year. Do not round intermediate calculations. Round your answer to two decimal places.

Reference no: EM132807169

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Cost of trade credit : A large retailer obtains merchandise under the credit terms of 1/20, net 30, but routinely takes 70 days to pay its bills.

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Cost of trade credit

Reference no: EM132807169

Reference no: EM132807169

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