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Question
MoJo Corporation purchases goods on credit with terms of 4.5/15, net 40. Which of the following is the annual cost (APR) of the non-free trade credit if the firm pays on Day 40 (i.e., the cost of forgoing the discount)? In your computations, assume there are 360 days in a year.
a. 42.41%
b. 67.85%
c. 0.00%
d. 30.84%
e. 113.09%
Answer
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Related questions
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a. Agreement to increase banks' capital (owners' equity) requirements in an effort to reduce the risk that mega bank failures will cause future financial crises
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Q:
Which of the following is true about financial institutions in the United States compared to those in other countries?
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Q:
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a. True
b. False
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a. True
b. False
Q:
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a. True
b. False
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a. True
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Q:
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a. True
b. False
Q:
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Q:
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Q:
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c. Firms with relatively high debt ratios have higher expected returns when business is bad.
d. Firms with relatively high debt ratios have higher expected returns when business is good.
e. Firms with relatively low debt ratios have higher expected returns when business is poor.