Question
Your firm has an average collection period of 32 days. Current practice is to factor all receivables immediately at a discount of 1.3 percent. What
| Your firm has an average collection period of 32 days. Current practice is to factor all receivables immediately at a discount of 1.3 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 Financial Reporting A Practical Guide
Authors: Alan Melville
6th edition
1292200743, 1292200766, 9781292200767, 978-1292200743
