Question: Question 20 4 points Save Answer Your firm has an average collection period of 38 days. Current practice is to factor all receivables immediately at

Question 20 4 points Save Answer Your firm has an average

Question 20 4 points Save Answer Your firm has an average collection period of 38 days. Current practice is to factor all receivables immediately at a discount rate of 4 percent. Assume that default is extremely unlikely. What is the effective cost of borrowing? A. 37.78 percent B. 28.79 percent c. 31.87 percent O d. 40.97 percent E. 48.01 percent

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