Inancial Planning and Control Systems Assignment 7

This paper is for bachelora€™s Financial Planning and Control Systems (MFT450) course. I did scan and will upload the chapters readings for you to reference. Also I am not for sure if this will help you out any but the text book that is being used for this course is a€œFoundations of Financial Managementa€� Thirteenth Edition by Stanley B. Block, Geoffrey A. Hirt and Bartley R. Danielsen. And there will BE NO EXSTENSIONS for this papep and will be doing a word count!!! Please let me know if you have any additional questions.

Instructions:
a€?Under what circumstances would it be advisable to borrow money to take a cash discount? (LO1) (Chapter 8 Discussion Question 1); A minimum requirement of a half page required.(125 words)

a€?What is the prime interest rate? How does the average bank customer fare in regards to the prime interest rate? (LO2) a€ (Chapter 8 Discussion Question 4) ); A minimum requirement of a half page required.(125 words)

a€?A borrower is often confronted with a stated interest rate and an effective interest rate. What is the difference, and which one should the financial manager recognize as the true cost of borrowing? (LO2) a€ (Chapter 8 Discussion Chapter 7) ); A minimum requirement of a half page required.(125 words)

a€?Compute the cost of not taking the following cash discounts.
o A. 2//10, net 40
o B. 2/15, net 30
o C. 2/10, net 45
o D. 3/10, net 9

a€?Delilaha€™s Haircuts can borrow from its bank at 14 percent to take a cash discount. The terms of the cash discount are 2/15, net 55. Should the firm borrow the funds? Explain.; A minimum requirement of a half page required.(125 words)