Your firm has an average collection period of 34 days. Current practice is to factor all receivables

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Your firm has an average collection period of 34 days. Current practice is to factor all receivables immediately at a discount of 1.2 percent. What is the effective cost of borrowing in this case? Assume that default is extremely unlikely.

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Corporate Finance Core Principles And Applications

ISBN: 9781260571127

6th Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan

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Question Posted: Nov 13, 2020 04:52 AM

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Your firm has an average collection period of 34 days. Current practice is to factor all receivables

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Corporate Finance Core Principles And Applications

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