Question: 1.3 Connect: Exercises and Problems Saved Problem 18-7 Factoring Receivables [LO3] 15 Your firm has an average collection period of 21 days. Current practice is

1.3 Connect: Exercises and Problems Saved Problem 18-7 Factoring Receivables [LO3] 15 Your firm has an average collection period of 21 days. Current practice is to factor all points receivables immediately at a discount of 1.1 percent. Assume that default is extremely unlikely. What is the effective cost of borrowing? (Do not round Intermediate calculations and Enter your answer as a pecent rounded to 2 decimal places, c.g., 32.16.) BBook Effective cost of borrowing 1. 10 % Hint Print References

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