Andrews corporation buys on terms of 18 net 45 days it does
Andrews Corporation buys on terms of 1/8, net 45 days, it does not take discounts, and it actually pays after 58 days. What is the effective cost of its trade credit? (Use a 365-day year.)
a. 7.61%
b. 9.96%
c. 7.37%
d. 17.52%
e. 10.42%
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andrews corporation buys on terms of 18 net 45 days it does not take discounts and it actually pays after 58 days what
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