Solution-What is the effective cost of borrowing in this

What is the effective cost of borrowing in this case

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Question - Your firm has an average collection period of 42 days. The current practice is to factor all receivables immediately at a 2 percent discount. What is the effective cost of borrowing in this case? Assume that default is extremely unlikely.

Reference no: EM132829114

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What is the effective cost of borrowing in this case

Reference no: EM132829114

Reference no: EM132829114

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