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Your firm has an average collection period of 31 days. Current practice is to factor all receivables immediately at a 1.20 percent discount. What is
Your firm has an average collection period of 31 days. Current practice is to factor all receivables immediately at a 1.20 percent discount. What is the effective cost of borrowing in this case? ive tried 365/31=11.77 1.20x11.77=14.12 but its telling me thats wrong... help please??? |
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