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Firdavs [7]
3 years ago
14

A business buys on terms of 2/10, net 30. It does not take discounts, and it typically pays 45 days after the invoice date. What

is the nominal annual percentage cost of its non-free trade credit, based on a 365-day year?
Business
1 answer:
tamaranim1 [39]3 years ago
3 0

Answer:

21.28%

Explanation:

Nominal annual percentage = Discount/(100-discount) * 365/(Days paid after purchase - Days of discount period)

Nominal annual percentage = 2/(100-2) *365/(45-10)

Nominal annual percentage = 2/98 * 365/35

Nominal annual percentage = 0.02041 * 10.4286

Nominal annual percentage = 0.212847726

Nominal annual percentage = 21.28%

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This company has information about businesses and complaints that have been filed against them. It would be a good idea to check
erik [133]

The fact that they will check hbefore making large purchases. is B. comparison shopping.

<h3>What is comparison shopping?</h3>

It should be noted that comparison shopping simply means choosing among the available suppliers to determine the best one.

In this case, the company is using the information to choose the best option.

Learn more about shopping on:

brainly.com/question/10310281

#SPJ1

8 0
2 years ago
Professor Green teaches environmental economics at the local university. Students learn that the professor has also written book
Finger [1]

Answer: c. a microeconomist.

Explanation;

Professor Green writing books about labor laws when taken in isolation is not enough proof that he is a microeconomist because even though labor markets and laws fall mostly under microeconomics, they should also be viewed from a macro level as well considering how unemployment affects the economy as a whole.

However, if Professor Green teaches environmental economics as they indeed do, Green is probably a micro-economist because Environmental economics traditionally falls under Microeconomics.

6 0
3 years ago
The market capitalization of this company is $140 million, it's beta is 0.75, the risk free rate is 2% and the market risk premi
tiny-mole [99]

Answer:

Ans. The cost of equity capital is 6.5 (6.5%)

Explanation:

Hi, all we need to do is fill the following equation with the data from the problem.

r(e)=rf+beta*(MRP)

Where:

rf = Risk free rate (in our case, 2%)

MRP = market risk premium (in our case, 6%)

r(e) = Cost of equity capital

Therefore, this is what we get.

r(e)=0.02+0.75*0.06=0.065

So the cost of equity capital is 6.5% or 6.5 as the problem suggests to answer.

Best of luck.

5 0
4 years ago
An ad by the Minnesota State Tourism Department, which promotes Minnesota as a vacation destination, was published in Life Mode
yKpoI14uk [10]

An ad by the Minnesota State Tourism Department, which promotes Minnesota as a vacation destination, was published in Life Mode magazine. The ad includes a picture of a couple against a scenic backdrop. In this print ad, the source of the advertising message is the Minnesota State Tourism Department

<h3><u>Explanation:</u></h3>

Tourism department generates revenues to the government with the help of the natural resources and beautiful destinations that exists in a country. Money will be collected from the people who visits the places in the country. This type of depart earns a lot of revenue during the time of vacations.

They also promote by giving certain discounts and offers during  vacation time for attracting many people towards that destination. They also give advertisements for making the people to support state tourism to generate resources for the nation. Thus, in the given example the source of the advertising message is the Minnesota State Tourism Department.

6 0
3 years ago
Best Discount Store uses the perpetual system for inventory and had a sale on account to Mark Watson of $3,000 with terms 1/10 o
ra1l [238]

Answer:

$1,980

Explanation:

The computation of the amount of cash Best Discount Store received is shown below:

= Sale value - returned merchandise inventory - discount

where,

Discount is

= (Sale value - returned merchandise inventory) × discount rate

= ($3,000 - $1,000) × 1%

= $20

So, the amount of cash received is

= $3,000 - $1000 - $20

= $1,980

5 0
3 years ago
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