Question 74 of afternoon session of 2009 Mock exam:
Where is this in the reading material. I haven’t seen this in the Schweser notes.作者: atate2007 时间: 2013-4-17 18:33
Can anyone help with this?作者: defour44 时间: 2013-4-17 18:33
Its probably in working capital management I havent seen the question so I cant be more specific. Was it about trade discounts?作者: yodacaia 时间: 2013-4-17 18:34
Its in the curriculum for sure…. it means u get a 2% discount if you pay within the first 10 days.. otherwise you must pay Before Day 45.
Please check the TB and make sure this is correct… i dont have it on me right now..作者: kmf229 时间: 2013-4-17 18:34
if you pay in 10 days you get a 2% discount, otherwise in 45 days you are to pay the whole amount.
so if you did not take the discount: 2/98 per period more.
you are going to be paying (1+2/98)
annualize this with the annualizing factor being 365/35
35=4510
so answer: (1+2/98)^(365/35) =1.2345 1 = 23.45%作者: onelife1 时间: 2013-4-17 18:34
