Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Affleck Inc.'s business is booming, and it needs to raise more capital. The company purchases supplies on terms of 1/10 net 20, and it currently takes the discount. One way of getting the needed funds would be to forgo the discount, and the firm's owner believes she could delay payment to 40 days without adverse effects. What would be the effective annual percentage cost of funds raised by this action? (Assume a 365-day year.)

a. 10.59%

b. 11.15%

c. 11.74%

d. 12.36%

e. 13.01%

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M942117

Have any Question? 


Related Questions in Basic Finance

Given the following information calculate the current value

Given the following information, calculate the current value of the stock: current dividend is $3.00, projected super normal growth for three years at 20%, growth rate after year 3 should remain constant at 11% and you w ...

A with reference to the four quadrant diagram explain in

a) With reference to the four quadrant diagram, explain in your own words the short and long run effects of an (unanticipated) monetary expansion on exchange rates; interest rates; the price level; the trade balance; out ...

Finance assignmentdo the following problems1assume the hong

Finance Assignment Do the following problems 1. Assume the Hong Kong dollar (HK$) value is tied to the U.S. dollar and will remain tied to the U.S. dollar. Assume that interest rate parity exists. Today, an Australian do ...

You will receive 5000 three years from now the discount

You will receive $5,000 three years from now. The discount rate is 8 percent. a. What is the value of your investment two years from now? Multiply $5,000 × .926 (one year's discount rate at 8 percent). b. What is the val ...

When a country ran a deficit in its balance of payments

When a country ran a deficit in its balance of payments under the Bretton Woods Accord, how was that deficit resolved?

Question 1a basic requirement for an effective financial

Question 1 A basic requirement for an effective financial system is a monetary system that performs which of the following financial functions? formation and transferring of money storing gold and silver to back up money ...

Your client has been given a trust fund valued at 1 million

Your client has been given a trust fund valued at $1 million. She cannot access the money until she turns 68 years old, which is in 12 years. At that time, she can withdraw $30,000 per month. If the trust fund is investe ...

You invest 3000 a year for three years at 12 percenta what

You invest $3,000 a year for three years at 12 percent. a. What is the value of your investment after one year? Multiply $3,000 × 1.12. b. What is the value of your investment after two years? Multiply your answer to par ...

Opti-net has a cost of goods sold cogs of 57 they are

Opti-Net has a Cost of Goods Sold (COGS) of 57%. They are considering opening another officeat a cost of $22,000 per month. If they have an average revenue of $70 per sale and they only sellone in five customers, what wo ...

Careers in financefinance is an exciting field in need of

Careers in Finance Finance is an exciting field in need of intelligent, skilled people. The job opportunities range from corporate finance; financial planning; investment banking; insurance; and real estate from individu ...

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate