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Problem 18-7 Factoring Receivables [LO3] Your firm has an average collection period of 22 days. Current...

Problem 18-7 Factoring Receivables [LO3]

Your firm has an average collection period of 22 days. Current practice is to factor all receivables immediately at a discount of 1.2 percent. Assume that default is extremely unlikely.

What is the effective cost of borrowing? (Do not round intermediate calculations and enter your answer as a pecent rounded to 2 decimal places, e.g., 32.16.)
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