A Firm That Stretches Its Payables Gains an Extra 1

question 34

Multiple Choice

A firm that stretches its payables gains an extra 1 month before it needs to pay for its purchases of raw materials but it loses a 2% discount for prompt payment.This is like borrowing at an effective annual interest rate of:

• A) 19.40%
• B) 24.00%
• C) 26.53%
• D) 27.43%

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Definitions:

Brand Driven

An approach where brand identity and values guide decision-making processes and strategies within an organization.

Creative Brands

Brands that are distinguished by their innovative approaches in marketing, design, and engagement with consumers, often leading to a strong brand image.

Incremental Innovation

Refers to gradual and continuous improvements made to a product or service over time to enhance features or efficiency.

Brand Driven

Refers to businesses or strategies that prioritize brand development and management as a core component of growth and success.