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Fee on the total balance of current receivables

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Wonder Dog Leash Company is seeking to raise cash and is in negotiation with Big Bucks finance company (BB) to pledge their
receivables.BB is willing to loan funds against 75 percent of current (that is, not overdue) receivables at a 15 percent annual percentage rate (see the aging of receivables in problem 10). To pay for its evaluation of Wonder's receivables, BB charges a 2.5 percent fee on the total balance of current receivables. 

Reference no: EM13238996

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