A firm sells its $1,000,000 receivables to a factor that specializes in collecting receivables for $960,000. The

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A firm sells its $1,000,000 receivables to a factor that specializes in collecting receivables for $960,000. The average collection period is 1 month. What is the effective annual rate on this arrangement?

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Fundamentals of Corporate Finance

ISBN: 978-1260566093

10th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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Question Posted: Oct 25, 2019 07:40 AM

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A firm sells its $1,000,000 receivables to a factor that specializes in collecting receivables for $960,000. The

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Fundamentals of Corporate Finance

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