Find the effective annual cost of trade credit

Assignment Help Finance Basics
Reference no: EM133001155

In this question we will compute the effective annual cost of trade credit. Suppose a firm is offered the following the terms are 1.5/8 net 30. Find he effective annual cost of trade credit. (Enter as a percentage to one decimal place). Use 365-days a year. Please choose the correct answer from the list (14.3%; 22.5%; 10.98%; 28.5%; 15.2%)

Reference no: EM133001155

Questions Cloud

What is the net present value of expansion project : Expects operating cash flows of $50,000 a year for nine years as a result. This expansion requires $36,500 in new fixed assets. These assets will be worthless a
What is the value of the macquarie group call : Macquarie Group's stock price is $160 and could halve or double in each six month period (equivalent to a standard deviation of 98%). A one-year call option on
What is the future value of a 5-year ordinary annuity : Future value of an annuity. What is the future value of a 5-year ordinary annuity with annual payments of $200, evaluated at a 15 percent interest rate?
What journal entry johnson record to recognize bad debt : What journal entry should Johnson record to recognize bad debt expense for 2021? Johnson Company calculates its allowance for uncollectible accounts
Find the effective annual cost of trade credit : In this question we will compute the effective annual cost of trade credit. Suppose a firm is offered the following the terms are 1.5/8 net 30. Find he effectiv
What is the net present value of the project : A company is considering a project with an initial cost of $8.4 million. The project will produce cash inflows of $1.9 million per year for 6 years.
Evaluate the cyber security posture of an organisation : Analyse the cyber security consequences of the increasing connectedness of end-point devices and control systems to an organisation's mission
How do calculate the rate of return on common stockholders : How do calculate the rate of return on common stockholders' equity? Sheffield Company had $42,000. Equity at the beginning of the year was $1,200,000
Salary sacrifice to achieve an accumulation target : Ferda is an engineer who likes precision in everything she does. Ferda is 55 years old and wants to retire in 10 years. She has been doing some reading about re

Reviews

Write a Review

Finance Basics Questions & Answers

  Proportion of the population in favor of the proposition

An opinion poll based on a sample of 50 subjects estimated p, the proportion of the population in favor of the proposition, as 0.72.

  What will be yearly annuity

Alex Bell has just retired from the telephone company. His total pension funds have an accumulated value of $200,000, and his life expectancy is 16 more years.

  What are the potential conflicts see in dual holdings

In Germany, large banks are often large lenders and large equity investors in the same firm. For instance, Deutsche Bank is the largest stockholder in Daimler.

  What is the probability that a randomly farm

What is the probability that a randomly farm exceeds 160 acres and is owned by someone over 50 years old?

  What do they say about the current culture

What are some of the cultural artifacts and what do they say about the current culture (values and assumptions) of the St. Martin de Porres High School Case?

  What is the pv if you buy

The truck will be sold at the end of 4 years for $33,000. a. Calculate present value if the discount rate is 10%: What is the PV if you Lease? What is the PV if you Buy?

  Find the mass flow rate and maximum velocity

Two very long parallel plates of length 2L are separated a distance b. The upper plate moves downward at a constant rate V. A fluid fills the space between the plates

  What happened to the market value of the insurance

What happened to the market value of the insurance company’s loan investment? What is the duration of the commercial loan investment when it is first issued

  Training and performance appraisal process

Prepare a five-page paper (excluding the title and reference pages), including at least three scholarly sources, in addition to the textbook, formatted according to APA style guidelines. In your paper, explain your chosen job design, organizationa..

  Determine the IRR for the computer system

The firm will borrow the entire $153,000 at 9% interest to be repaid in 2 annual payments. Determine the IRR for the computer system

  Distributed population with an unknown population variance

You select a random sample of 16 observations from a normally distributed population with an unknown population variance.

  Do you think the price of the debt with warrants is too high

On the basis of your findings in part a, do you think the price of the debt with warrants is too high or too low? Explain. Assuming that the firm can raise the needed funds under the specified terms, which debt financing alternative-debt or debt with..

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