Maltz Landscaping has an average collection period of 38 days for its accounts receivable. Currently, Maltz factors

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Maltz Landscaping has an average collection period of 38 days for its accounts receivable. Currently, Maltz factors all of its receivables at a 2 percent discount. What is the effective annual interest rate on the financing from the factor?

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Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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Question Posted: Jun 12, 2012 01:11 AM

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Maltz Landscaping has an average collection period of 38 days for its accounts receivable. Currently, Maltz factors

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The terms of this factor indicate that for every dollar of receivables so...View the full answer

Fundamentals of corporate finance

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