Question
Your firm has an average collection period of 24 days. Current practice is to factor all receivables immediately at a discount of 1.4 percent. What
Your firm has an average collection period of 24 days. Current practice is to factor all receivables immediately at a discount of 1.4 percent.
| What is the effective cost of borrowing in this case? (Do not round intermediate calculations. Enter your answer as a pecent rounded to 2 decimal places, e.g., 32.16.) |
| Effective cost | % |
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International Finance For Dummies
Authors: Ayse Evrensel
1st Edition
111852389X, 978-1118523896
