What is effective annual cost of trade credit

Assignment Help Financial Management
Reference no: EM131585089

Your supplier offers terms of 1.3?/10?, Net 45. What is the effective annual cost of trade credit if you choose to forgo the discount and pay on day 45??

The effective annual cost of the trade credit is nothing %. ?(Round to two decimal? places.)

Reference no: EM131585089

Questions Cloud

What is falon cost of common equity capital : What is Falon's cost of common equity capital?
Provided on the dividend irrelevance theory : Usine the literature provided on the Dividend Irrelevance Theory” by James S. Ang and Stephen J.
Calculate the cost of the trade credit : Calculate the cost of the trade credit if your firm does not take the discount and pays on day 30.
Maximizing shareholder wealth and never paying bribes : Is there a conflict between maximizing shareholder wealth and never paying bribes when doing business abroad?
What is effective annual cost of trade credit : What is the effective annual cost of trade credit if you choose to forgo the discount and pay on day 45??
Investment to analyze-what is present value of investment : You are given an investment to analyze. What is the present value of this investment if 15 percent per year is the appropriate rate?
Cash flow resulting from the proposed acquisition : What is the Time 0 (initial) cash flow resulting from the proposed acquisition?
The stock price increase using only delta approximation : what is the approximate price of the call option after the stock price increase using only a delta approximation?
Compute the cost of capital for the firm : Compute the cost of capital for the firm for the? following. A bond that has a ?$1,000 par value? (face value) and contract or coupon interest rate of 11.6%

Reviews

Write a Review

Financial Management Questions & Answers

  Issue of preferred stock-what is the required return

Moraine, Inc., has an issue of preferred stock outstanding that pays a $3.15 dividend every year in perpetuity. If this issue currently sells for $92 per share, what is the required return?

  Bonds do not pay any interest

the one type of bond that you should avoid is a zero coupon bond, because such bonds do not pay any interest.

  What is the default risk premium on the corporate bond

A Treasury bond that matures in 10 years has a yield of 5%. A 10-year corporate bond has a yield of 7.75%. Assume that the liquidity premium on the corporate bond is 0.4%. What is the default risk premium on the corporate bond?

  Shares of common stock-weighted average cost of capital

Jack's Construction Co. has 100,000 bonds outstanding that are selling at par value. The bonds yield 9.9 percent. The company also has 4.4 million shares of common stock outstanding. The stock has a beta of 1.6 and sells for $40 a share. The U.S. Tre..

  What is yield to maturity at current market

Harrimon Industries bonds have 4 years left to maturity. What is the yield to maturity at a current market price of $881?

  Portfolio to the sharpe measure of the best portfolio

Compare the Sharpe measure of Rodney's portfolio to the Sharpe measure of the best portfolio.

  Treasury bills have produced the returns

Over the past 4 years, large-company stocks and U.S. Treasury bills have produced the returns stated below. Given this information, 1. What are the average rates of return on large-company stocks and Treasury bills? 2. What are the standard deviation..

  What tax rate is required to meet budgetary demands

The total assessed property value in Frame town is $77,000,500. Budget planners have determined that $5,140,900 will required providing all government services next year. What tax rate is required to meet budgetary demands? (Express your answer as a ..

  What will the value of the firm be if company takes on debt

Jet Corporation expects an EBIT of $26,500 every year forever. The company currently has no debt, and its cost of equity is 15 percent. The corporate tax rate is 35 percent. Suppose the company can borrow at 10 percent. What will the value of the fir..

  What is the npv of project in worst-case scenario

We are evaluating a project that costs $1074790, has a seven-year life, What is the NPV of the project in worst-case scenario?

  Treasury bond rate-derive stock price of this company

We have the following information for the company. The stock pays a $10 dividend, and it will grow by 100% the first year, 30% the second year and 3% forever after that. The unlevered beta is 1, D/E is 60/40 and the tax rate is .3. Additionally, we k..

  How much must be deposited every three months

If the account pays 5.2% APR compounded monthly, how much must be deposited every three months?

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