Answered: If a firm's supplier has a 3/10/60…

If a firm's supplier has a 3/10/60 credit policy, the cost of trade credit per period is equal to O a. 3.09% Ob. 22.58% OC 3% Od. 97% Oe. None of the above

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 3P: What are the nominal and effective costs of trade credit under the credit terms of 3/15, net 30?

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Question

If a firm's supplier has a 3/10/60 credit policy, the cost of trade credit per period is equal to
O a. 3.09%
O b. 22.58%
OC 3%
O d. 97%
O e. None of the above

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