Your firm has an average collection period of 47 days. Current practice is to factor all receivables

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Your firm has an average collection period of 47 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.

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Essentials Of Corporate Finance

ISBN: 9780073382463

7th Edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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Question Posted: Jun 14, 2019 11:08 AM

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Your firm has an average collection period of 47 days. Current practice is to factor all receivables

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Essentials Of Corporate Finance

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