Multiple Choice
Dixie Tours Inc. buys on terms of 2/15, net 30 days. It does not take discounts, and it typically pays 35 days after the invoice date. Net purchases amount to $720,000 per year. What is the nominal annual cost of its non-free trade credit? (Assume a 365-day year.)
A) 17.2%
B) 23.6%
C) 26.1%
D) 37.2%
E) 50.6%
Correct Answer:
Verified
Correct Answer:
Verified
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