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Your firm has an average collection period of 20 days. Current practice is to factor all receivables immediately at a discount of 1 percent. Assume

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Your firm has an average collection period of 20 days. Current practice is to factor all receivables immediately at a discount of 1 percent. Assume that default is extremely unlikely. What is the effective cost of borrowing? (Do not round intermediate calculations and enter your answer as a pecent rounded to 2 decimal places, e.g., 32.16.) Effective cost of borrowing %

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