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Your firm has an average collection period of 37 days. Current practice is to factor all receivables immediately at a discount of 1.8 percent. Assume
Your firm has an average collection period of 37 days. Current practice is to factor all receivables immediately at a discount of 1.8 percent. Assume that default is extremely unlikely and that there are 365 days in a year. What is the effective cost of borrowing in this case? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Effective cost %
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