What is the effective cost of borrowing in this case

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Your firm has an average collection period of 45 days. Current practice is to factor all receivables immediately at a 3 percent discount.

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What is the effective cost of borrowing in this case? Assume that default is extremely unlikely. (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Reference no: EM131069048

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