cost of trade credit (hard)

CFA Level I
#1

good formula to know, it is in the CORP FIN book, you have 55 seconds bonus: discuss the inventory tradeoff.

#2

daj224 Wrote: ------------------------------------------------------- > good formula to know, it is in the CORP FIN book, > you have 55 seconds > > bonus: discuss the inventory tradeoff. no one has gotten it here it cost of TC = 1 + (discount/(1 - discount) ^ 365/pay day - discount day - 1 confused? yup, go to CORP FIN book in the CFAI set.

#3

Crap, I know what trade credit is, not how to solve it.

#4

Is this in the LOS?

#5

supersharpshooter Wrote: ------------------------------------------------------- > Is this in the LOS? saw it in a CFAI book AND MEMORIZED IT.

#6

daj can you wite this out again, cant follow that formula!

#7

getterdone Wrote: ------------------------------------------------------- > daj can you wite this out again, cant follow that > formula! It is hard b/c it is pretty long. See the inventory/vendor section of the corp finance book. if you can’t find it, I’ll try my bes to write it out

#8

sorry daj have my FSA book just break it down, i will start 1 + ?

#9

it’s in reading #46 towards the end you will see it, it’s a pretty big formula i don’t see it mentioned in the LOS and it looks too complicated to be tested on so i’m not gonna memorize it edit: p.120

#10

actually i did just memorize it looks pretty similar to some of the yield formulas so it shouldn’t be too hard to remember