Firm has an average collection period

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Your firm has an average collection period of 35 days. Current practice is to factor all receivables immediately at a discount of 1.6 percent. What is the effective cost of borrowing in this case?

Reference no: EM131073243

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Firm has an average collection period : Your firm has an average collection period of 35 days. Current practice is to factor all receivables immediately at a discount of 1.6 percent. What is the effective cost of borrowing in this case?

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