Question
Your firm has an average collection period of 33 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 33 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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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
8th edition
013342362X, 978-0133423624
