Effective Cost of Trade Credit Assignment

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February 18th, 2020

A large retailer obtains merchandise under the creit terms of 1/10 net 45 but routinely takes 55 days to pay its bills. (Because the retailer is an important customer suppliers allow the firm to stretch its credit terms.) What is the retailers effective cost of trade credit? Assume 365 days in year for your calculations. Get Finance homework help today

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