What is the firms effective cost of borrowing

Reference no: EM13265279

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

Questions Cloud

Obtain the angular velocity of the wheel : A 1 kg wheel (hoop) rolls 5 rev. across a horizontal surface (without slipping)a distance of 3.2 m. if the wheel rolls for 3 sec. determine the angular velocity of the wheel

Discuss the evolving musical language of the period : How does the emergence of the symphony, as a genre, reflect the cultural values and history associated with the Enlightenment and discuss the evolving musical language of the period

Which fet operates in both depletion and enhanced mode : Which FET operates in both Depletion and Enhanced mode and how do you recognize the mode by just looking at the Family of Drain Characteristic Curves

How tall is the person : The owner of a van installs a rear-window lens that has a focal length of -0.299 m. When the owner looks out through the lens at a person standing directly behind the van, How tall is the person

What is the firms effective cost of borrowing : 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?

What is the inventory period : Wage Garnishers, Inc. has sales for the year of $50,300 and cost of goods sold of $23,700. The firm carries an average inventory of $4,800 and has an average accounts payable balance of $4,400. What is the inventory period?

What is the smallest thickness of a soap film : What is the smallest thickness of a soap film (n=1.40) that would appear black if illuminated with 470nm light? Assume there is air on both sides of the soap film

What is the projects operating cash flow for the first year : What is the project ' s operating cash flow for the first year (t = 1)? Page(s): 459, Financial Management: Theory & Practice by Eugene F. Brigham

Explain intermolecular attractions influence the solubility : How do intermolecular attractions influence the solubility of a solute in a particular solvent

User Account

All Pages