Sybex Corp. sells its goods with terms of 2/12 EOM, net 38. What is the implicit cost of the trade credit?

Sybex Corp. sells its goods with terms of 2/12 EOM, net 38. What is the implicit cost of the trade credit?

Question:Sybex Corp. sells its goods with terms of 2/12 EOM, net 38. What is the implicit costof the trade credit?Solution: Computation of the Implicit cost 2 Effective annual rate = 1 + 100 −...