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Your firm has an average collection period of 55 days. Current practice is to factor all receivables immediately at a 2 percent discount. What is
Your firm has an average collection period of 55 days. Current practice is to factor all receivables immediately at a 2 percent discount. What is the effective cost of borrowing in this case? Assume that default is extremely unlikely. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Effective annual rate %
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