Lamar lumber buys 8 million of materials net of discounts, Ask an Expert

Finance

Lamar Lumber buys $8 million of materials (net of discounts) on terms of 3/5, net 35; and it currently pays after 5 days and takes discounts. Lamar plans to expand, which will require additional financing. Assume 365 days in year for your calculations.

If Lamar decides to forgo discounts, how much additional credit could it obtain? Round your answer to the nearest cent.

What would be the effective cost of that credit? Round your answer to two decimal places.

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9863565

Have any Question?Write your Review or question?

Related Questions in Basic Finance

Question - if tapley inc borrows 500000 on a 10 add on

Question - If tapley inc borrows 500000 on a 10 add on basis payable over 3 years in 36 equal end of month installments how large would the monthly payments be?

How does a firm navigate strategic management in the

How does a firm navigate strategic management in the context of an international environment? What complications does an international environment provide? What are the benefits of operating in an international environme ...

Question - laine needs to save up 4000 in 4 years if she

Question - laine needs to save up $4000 in 4 years. If she can set aside $1000 today, what rate of return does she need on her account? Elaine needs to save up $4000 in 4 years. If she can set aisde $50 per month what ra ...

How many years will it take for 197000 to grow to 554000 if

How many years will it take for 197,000 to grow to 554,000 if it is invested in an account with a quoted annual interest rate of 8% with monthly compounding of interest?

Sidney took a cash advance of 300 by using checks linked to

Sidney took a cash advance of $300 by using checks linked to her credit card account. The bank charges a cash advance fee of 4 percent on the amount borrowed and offers no grace period on cash advances. Sidney paid the b ...

What are the ways that it can help comply with legal

What are the ways that IT can help comply with legal requirements and social responsibilities surrounding the sales of alcohol?

Question - find an australian house or apartment that you

Question - Find an Australian house or apartment that you would like to research. From here on this will be referred to as a house or property or home regardless of whether it is a house or apartment. The house can be an ...

The everly equipment companys flange-lipping machine was

The Everly Equipment Company's flange-lipping machine was purchased 5 years ago for $70,000. It had an expected life of 10 years when it was bought and its remaining depreciation is $7,000 per year for each year of its r ...

1 if you deposit 1832 into an account paying 0600 annual

1. If you deposit $1,832 into an account paying 06.00% annual interest compounded monthly, how many years until there is $32,447 in the account? 2. What is the value today of receiving a single payment of $13,701 in 29 y ...

How to find the amount of us dollars needed to purchase 1

How to find the amount of US dollars needed to purchase 1 swiss franc if the exchange rate is 0.9897 Swiss francs per U.S. dollar A trip to Japan is estimated to cost$606. How many yen do you need to buy if the exchange ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Basic Finance Expert