Your firm has an average collection period of 28 days. Current practice is to factor all receivables
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Question:
Your firm has an average collection period of 28 days. Current practice is to factor all receivables immediately at a discount of 1.8 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, e.g., 32.16.)
Related Book For
Fundamentals of corporate finance
ISBN: 978-0073382395
9th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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