Q1: a company is offered trade credit terms of 2/10,net 45. the implicit
cost of failing to take the discount and instead paying the account in 45
days is?
Q2: a company plans to issue commercial paper for one month. The company is
quoted a rate of 5.88% with a dealer comission of 1/8 percent and a backup
line of cost 1/4 percent. the effective cost of financing is?
