Ignoring defaults,what is the approximate effective cost of factoring if receivables are sold at a 2% discount and the average collection period is 1 month?
A) 19.40%
B) 24.00%
C) 26.53%
D) 27.40%
Correct Answer:
Verified
Q42: The safety margin kept by the bank
Q54: Which of the following is correct for
Q57: Which of the following would act to
Q58: Which of the following would not be
Q61: What is the inventory period for a
Q62: Calculate the accounts receivable period for a
Q63: The longer the firm's accounts payable period,the:
A)
Q64: Which of the following situations will improve
Q66: Ignoring defaults, what is the approximate effective
Q75: A firm has borrowed $1 million and
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents