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    Corporate Finance Study Set 5
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    Exam 19: Short-Term Financial Planning
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    A Firm Sells Its $1,000,000 Receivables to a Factor for $960,000.Average
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A Firm Sells Its $1,000,000 Receivables to a Factor for $960,000.Average

Question 68

Question 68

Multiple Choice

A firm sells its $1,000,000 receivables to a factor for $960,000.Average collection period is one month.The effective annual rate is:


A) 27.43%.
B) 48.00%.
C) 60.10%.
D) 63.21%.

Correct Answer:

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