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Assume the credit terms offered to your firm by your suppliers are 3/5, Net 30. Calculate the cost of the trade credit if your firm does not take the discount and pays on day 30.

05 / 03 / 2018 Assignment

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Assume the credit terms offered to your firm by your suppliers are 3/5, Net 30. Calculate the cost of the trade credit if your firm does not take the discount and pays on day 30.

1. Which of the following companies are likely to have high short-term financing needs? Why?

a. A clothing retailer

b. A professional sports team

c. An electric utility

d. A company that operates toll roads

e. A restaurant chain


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