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A firm in the above question receives "5/10, net 60" trade credit terms from its suppliers. This firm has a below invest
Posted: Fri Mar 04, 2022 9:42 am
by answerhappygod
- A Firm In The Above Question Receives 5 10 Net 60 Trade Credit Terms From Its Suppliers This Firm Has A Below Invest 1 (16.35 KiB) Viewed 36 times
A firm in the above
question receives "5/10, net 60" trade credit terms from its suppliers. This firm has a below investment grade ljunk) credit rating, therefore the bank can only provide a loan to this form at 20% annual interest. The firm consistently fails to pay suppliers on day 10 but pays by day 60. This firm should get a loan from the bank at 20% in order to make payments to their suppliers on day 10 O True Fale