(Answered) Question two suppliers offer the same goods at the same

Finance

Question: Two suppliers offer the same goods at the same prices, but under different credit terms. Supplier A offers terms of 1/15, net 30, whereas supplier B offers terms of 2/10, net 60. The firm can borrow from a bank at an annual interest rate of 10 percent. Which of the following would be best for the firm to do?

(i) Purchase from A and pay after 30 days.

(ii) Purchase from B and pay after 60 days.

(iii) Purchase from A, pay after 15 days, and borrow any money needed from the bank.

(iv) Purchase from B, pay after 10 days, and borrow any money needed from the bank.

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92559184
Price:- $10

Verified Expert

Priced at $20 Now at $10, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Basic Finance

How would you evaluate flash memorys performance and

How would you evaluate flash memory's performance and financial position?

Abc company sells 4034 chairs a year at an average price

ABC Company sells 4034 chairs a year at an average price per chair of $195. The carrying cost per unit is $29.85. The company orders 415 chairs at a time and has a fixed order cost of $92 per order. The chairs are sold o ...

Please show formula and explanationyou have decided to

Please show formula and explanation You have decided to place $553 in equal deposits every month at the beginning of the month into a savings account earning 10.62 percent per year, compounded monthly for the next 13 yea ...

Certain financial ratios for elizabeth arden for its most

Certain financial ratios for Elizabeth Arden for its most recent year below, along with the average ratios for its industry. Based on those ratio a. Does Arden seem to prefer to finance its assets with debt or with equit ...

Xyz stock price and dividend history are as

XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End 2010 $ 122 $ 5 2011 132 $ 5 2012 $ 110 ...

How do you separate the individual aspects of the

How do you separate the individual aspects of the successful partnership pyramid into inputs and outputs and explain why each aspect of the pyramid is an input or an output.

Calculate the value of a bonds with face value of 1000 a

Calculate the value of a bonds with face value of $1,000 a coupon interest rate of 8 percent paid semiannually; and a maturity of 10 years. Assume the following discount rate (a) 6 percent (b) 8 percent (c) 10 percent

Determine the operating cash flow ocf for kleczka llc based

Determine the operating cash flow? (OCF) for? Kleczka, LLC., based on the following data. During the year the firm had sales of $2,548,000?, cost of goods sold totaled $1,802,000?, operating expenses totaled $320,000?, a ...

What is the relation between a corporate bonds expected

What is the relation between a corporate bond's expected return and the yield to maturity? definition of default risk and explanation of how these rates incorporate default risk.

A firm has total assets of 592395 current assets of 186859

A firm has total assets of $592395, current assets of $186859, current liabilities of $143545, and total debt of $210421. What is the debt-equity ratio? Round your answer to two decimal places.

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