Your firm has an average collection period of 38 days. Current practice is to factor all receivables

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Your firm has an average collection period of 38 days. Current practice is to factor all receivables immediately at a discount of 1.75 percent. 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: 9781265553609

13th Edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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Question Posted: Aug 24, 2021 06:46 AM

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Your firm has an average collection period of 38 days. Current practice is to factor all receivables

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Fundamentals Of Corporate Finance

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