Problemyour firm has an average collection period of 23, Ask an Expert

Finance

Problem:

Your firm has an average collection period of 23 days. Current practice is to factor all receivables immediately at a 1.30 percent discount.

Required:

Question: What is the effective cost of borrowing in this case?

Note: Please explain comprehensively and give step by step solution.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91148317

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