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If a firm's supplier has a 3/10/60 credit policy, the cost of trade credit per period is equal to a. 3.09% b. 22.58% c. 3% d. 97% e. None of the above

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter22: Providing And Obtaining Credit

Section: Chapter Questions

Problem 10MC

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Question

If a firm's supplier has a 3/10/60 credit policy, the cost of trade credit per period is equal to

a.

3.09%

b.

22.58%

c.

3%

d.

97%

e.

None of the above

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