TITLE

The calculation of the effective annual cash discount rate revisited

AUTHOR(S)
Oliver, Thomas W.; Kim, Paul
PUB. DATE
June 2000
SOURCE
American Business Review;Jun2000, Vol. 18 Issue 2, p50
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
Provides methods for calculating the effective annual rates for cash discounts. Relationship between conventional discount rate, Clark's rate, daily compounded rate and continuously compounded rate; Importance of knowledge on effective cash discounts rate for sellers and buyers; Implications for credit policy decisions of selling firms.
ACCESSION #
3272848

 

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