Determining the nominal cost of credit


Ajax, Inc. purchases $22 million of material on terms of 2/10, net 30, and it currently pays within 10 days and takes discounts. Ajax intends to expand and will need additional financing. If Ajax decides to forgo discounts, how much additional credit could it get, and what would be the nominal cost of that credit?

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Finance Basics: Determining the nominal cost of credit
Reference No:- TGS057112

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