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    Exam 19: Short-Term Financial Planning
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    Ignoring Defaults, What Is the Approximate Effective Cost of Factoring
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Ignoring Defaults, What Is the Approximate Effective Cost of Factoring

Question 83

Question 83

Multiple Choice

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) 27.43%

Correct Answer:

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