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gizmo_the_mogwai [7]
3 years ago
10

Assume the credit terms offered to your firm by your suppliers are 2.7​/5​, Net 30. Calculate the cost of the trade credit if yo

ur firm does not take the discount and pays on day 30.
Business
1 answer:
crimeas [40]3 years ago
8 0

Answer: 49.02%

Explanation:

The cost of the trade credit will be calculated thus:

Amount when discount is availed will be: = 100-2.7 = 97.3

Discount rate = 2.7

Interest rate per period = 2.7/97.3 2.77%

Number of Days = 30-5 = 25

Therefore, the EAR will be calculated as:

= [(1+2.77%)^(365/25)] - 1

= 49.02%

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Rockwood International needs to make risky decisions on a daily basis. Therefore, its managers are likely to
gizmo_the_mogwai [7]

Answer:

Centralize decision making

Explanation:

From the question we are informed about Rockwood International who needs to make risky decisions on a daily basis. Therefore, its managers are likely to Centralize decision making.

Centralization can be regarded as setup whereby decision-making powers are been concentrated or given to few leaders that are on top of the organizational structure. Decisions making are been carried out at the top then communicated to lower-level managers so that implementation can take place.

5 0
3 years ago
Suppose the market for cars is unregulated. That is, car prices are free to adjust based on the forces of supply and demand. If
grin007 [14]

This question is incomplete. The complete question should be:

Suppose the market for cars is unregulated. That is, car prices are free to adjust based on the forces of supply and demand.

If a shortage exists in the car market, then the current price must be ____ than the equilibrium price. For the market to reach equilibrium, you would expect ______.

Answer:

If a shortage exists in the car market, then the current price must be <u>lower</u> than the equilibrium price. For the market to reach equilibrium, you would expect <u>buyers to pay higher prices.</u>

Explanation:

When demand is equal to supply in a market, the the market is said to be at equilibrium.

In a market for cars, the equilibrium price is the price at which cars are sold when demand for cars equals the supply of cars into the market.

If the price of cars in the market drops lower than the equilibrium price, <u>then there will be an increase in demand for cars. Without a corresponding increase in supply of cars, the market will experience a shortage of cars.</u>

For the market to reach equilibrium, prices will have to rise and car buyers will have to pay higher prices.

5 0
4 years ago
Young people should invest in: (5 points)
mylen [45]
A because it helps you without getting loans
6 0
3 years ago
The combination of debt financing and equity financing that maximizes a firm's value is known as its:
ohaa [14]

Answer:

optimal capital structure

Explanation:

optimal capital structure can be regarded as a combination of

of debt and equity financing which brings about maximization of amarket value in a firm. It should be noted that optimal capital structure is the combination of debt financing and equity financing that maximizes a firm's value.

5 0
3 years ago
_____ involves interpreting the meaning of the received messages
mr Goodwill [35]

Answer:

Decoding

Explanation:

Decoding involves interpreting the meaning of the received messages.

It is a process through which a non verbal, numeric or an integrated messaged is interpreted.

This process is only complete when the intended message has been correctly decoded and the message has been understood the way it was supposed to be.

For example intelligence companies send each other high intelligence coded messages which are then decoded with the help of professionals to understand the required message.

7 0
3 years ago
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