What is the effective cost of borrowing

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Your firm has an average collection period of 34 days. Current practice is to factor all receivables immediately at a 1.50 percent discount. What is the effective cost of borrowing?

Reference no: EM13273243

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What is the effective cost of borrowing : Your firm has an average collection period of 34 days. Current practice is to factor all receivables immediately at a 1.50 percent discount. What is the effective cost of borrowing?
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