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A firm has an average collection period of 37 days and factors all of its receivables immediately at a discount of 98 percent. Assume all

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A firm has an average collection period of 37 days and factors all of its receivables immediately at a discount of 98 percent. Assume all accounts are collected in full. What is the firm's effective cost of borrowing? 9.98 percent 10.24 percent 10.38 percent 10.20 percent 10.13 percent

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