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What is the firms effective cost of borrowing

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Lacey's has an average collection period of 32 days and factors all of its receivables immediately at a 1.1 percent discount. Assume all accounts are collected in full. What is the firm's effective cost of borrowing?

13.38 percent
13.45 percent
13.57 percent
13.63 percent
13.88 percent

 

Reference no: EM13265279

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