Your firm has an average collection period of 29 days. Current practice is to factor all receivables

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Your firm has an average collection period of 29 days. Current practice is to factor all receivables immediately at a 1.25 percent discount. What is the effective cost of borrowing in this case? Assume that default is extremely unlikely

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Fundamentals of corporate finance

ISBN: 978-0078034633

10th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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Question Posted: Mar 13, 2014 08:55 AM

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Your firm has an average collection period of 29 days. Current practice is to factor all receivables

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Fundamentals of corporate finance

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