Sunny Coast Enterprises has been approached by a factor that offers to purchase the Hong Kong Media

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Sunny Coast Enterprises has been approached by a factor that offers to purchase the Hong Kong Media Imports receivable at a 16% per annum discount plus a 2% charge for a non-recourse clause.

a. What is the annualized percentage all-in-cost of this factoring alternative?

b. What are the advantages and disadvantages of the factoring alternative compared to the alternatives in Sunny Coast Enterprises (A)?

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Multinational Business Finance

ISBN: 978-0133879872

14th edition

Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett

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Question Posted: Jan 19, 2017 10:00 AM

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Sunny Coast Enterprises has been approached by a factor that offers to purchase the Hong Kong Media

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Assumptions Values Face amount of receivable 100000 Maturity days 180 Fac...View the full answer

Multinational Business Finance

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