Noddings Inc. needs to raise more capital because its business is booming. The company purchases supplies on terms of 1/
Posted: Wed Jul 06, 2022 6:27 pm
Noddings Inc. needs to raise more capital because its businessis booming. The company purchases supplies on terms of 1/10 net 20,and it currently takes the discount. One way of getting the neededfunds would be to forgo the discount, and the firm's owner believesshe could delay payment to 40 days without adverse effects. Whatwould be the effective annual percentage cost of funds raised bythis action? (Assume a 365-day year.)