Trade Credit Rates

Related BrainMass Solutions

• Trade Credit Rates

  51999 Trade Credit Rates Trade Credit Rates. A firm currently offers terms of sale of 3/20, net 40. What effect will the following actions have on the implicit interest rate charged to customers that pass up the cash discount?

• Monetary Policy: money, credit, the Federal Reserve, interest

  If credit markets are working fine trade finance is easy to get, else it may bring the whole system to a standstill: something that happened very recently when credit markets froze the world over.

• Accounting: Trade Credit Discounts

  The trade credit discounts for accounting are examined. The approximate interest rates are given.

• short-term financing available to health care organizations

  o Explain the opportunity costs involved with some types of trade credit. o How do short-term bank notes provide what amounts to permanent financing at short-term rates?

• Cash Conversion, cost of trade credit, commercial paper

  Calculate the cost of trade credit. What is the effective cost of issuing the commercial paper? 5.

• Primary functions of the foreign exchange market and global companies

  The FOREX market provides a source of credit via specialized instruments such as letters of credit. 3.

• Healthcare economics and accounting

  Trade credit terms quoted as "3/15, net 45" means the customer: A. Would receive a 3% discount if payment is made within 15 days. B.

• Reducing Float Costs, Loans, Credit, Inventory Management

  The question also moves onto credit, by asking about commercial paper, interest rates, agency costs and the use of trade credit.

• Trade Credit Rates and Annual Rates of Interest

  232434 Trade Credit Rates and Annual Rates of Interest Company X sells on a 1/20, net 60, basis. Customer Y buys goods with an invoice of $1,000. a. How much can company Y deduct from the bill if it pays on day 20? b.