Current practice is to factor all receivables immediately


Your firm has an average collection period of 29 days. Current practice is to factor all receivables immediately at a discount of 1.9 percent. What is the effective cost of borrowing in this case? (Do not round intermediate calculations. Enter your answer as a pecent rounded to 2 decimal places, e.g., 32.16.)

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Financial Management: Current practice is to factor all receivables immediately
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