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For the year just ended, ZZZ Best had an average of $100,000 in accounts receivable. Credit sales were $700,000.Best's factors its receivables by discounting them
- For the year just ended, ZZZ Best had an average of $100,000 in accounts receivable. Credit sales were $700,000.Best's factors its receivables by discounting them 4 percent. What is the annual percentage rate and effective interest rate on this source of short-term financing?
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The annual percentage rate APR is calculated by adding the discount rate to 100 ...
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Financial Management Principles and Applications
Authors: Sheridan Titman, Arthur J. Keown, John H. Martin
13th edition
134417216, 978-0134417509, 013441750X, 978-0134417219
