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    Fundamentals of Corporate Finance Study Set 12
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    What Is the Effective Cost of Credit Terms of 3/5
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What Is the Effective Cost of Credit Terms of 3/5

Question 71

Question 71

Multiple Choice

What is the effective cost of credit terms of 3/5 net 45 if the firm stretches the accounts payable to 60 days?


A) 12.9%
B) 35.6%
C) 39.9%
D) 22.4%
E) 42.7%

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