Your firm has an average collection period of 24 days


Your firm has an average collection period of 24 days. Current practice is to factor all receivables immediately at a 1.40 percent discount.

What is the effective cost of borrowing in this case? (Round your answer to 2 decimal places. (e.g., 32.16))

Effective cost _________%

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Financial Management: Your firm has an average collection period of 24 days
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