A company has a collection period of 37 days and factors all receivables immediately at a discount of 2.7 percent. What is the effective annual cost of borrowing? Assume 365 days per year.
A company has a collection period of 37 days and factors all receivables immediately at a discount of 2.7 percent. What is the effective annual cost of borrowing? Assume 365 days per year.
Chapter16: Working Capital Policy And Short-term Financing
Section: Chapter Questions
Problem 17P
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