Cost of trade credit if a firm buys under terms of 315 net, Ask an Expert

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Cost of trade credit. If a firm buys under terms of 3/15, net 50, but actually pays on the twenty day and still takes discount, what is the nominal cost of its non free trade credit? Assume 365 days in calculations. Does it receive more or less credit that it would if it paid within 15 days?

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Financial Management, Finance

Category:- Financial Management
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