Question
A company has a collection period of 40 days and factors all receivables immediately at a discount of 1.8 percent. What is the effective annual
A company has a collection period of 40 days and factors all receivables immediately at a discount of 1.8 percent. What is the effective annual cost of borrowing? Assume 365 days per year.
Multiple Choice
18.03%
16.70%
17.68%
15.71%
16.73%
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Derivative Products And Pricing The Das Swaps And Financial Derivatives Library
Authors: Satyajit Das
1st Edition
0470821647, 9780470821640
