Your firm has an average collection period of 34 days. Current practice is to factor all receivables
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Your firm has an average collection period of 34 days. Current practice is to factor all receivables immediately at a discount of 1.2 percent. What is the effective cost of borrowing in this case? Assume that default is extremely unlikely.
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Related Book For
Corporate Finance Core Principles And Applications
ISBN: 9781260571127
6th Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
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