What is the nominal annual percentage cost

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Q1. Yoyot buys on terms of 2/10, net 30. It does not take discounts, and it typically pays 60 days after the invoice date. Net purchases amount to P500,000 per year. What is the nominal annual percentage cost of its non-free trade credit, based on a 360-day year?

a. 36.00%

b. 36.73%

c. 24.48%

d. 24.00%

Q2. Compute the risk premium for the stock of SSD Company if the risk-free rate is 5.0%, the expected market return is 12%, and SSD Company's stock has a beta of 1.2.

a. 84.0%

b. 8.0%

c. 8.4%

d. 16.0%

Reference no: EM133020901

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