Harter's Meats Has an Average Collection Period of 36 Days

question 72

Multiple Choice

Harter's Meats has an average collection period of 36 days and factors all of its receivables immediately at a 1.2 percent discount.Assume all accounts are collected in full.What is the firm's effective cost of borrowing?

• A)12.88 percent
• B)12.94 percent
• C)12.97 percent
• D)13.02 percent
• E)13.07 percent

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