Home /
Expert Answers /
Finance /
assume-the-following-facts-about-a-firm-that-borrows-by-pledging-its-receivables-nbsp-what-is-the-e-pa638
(Solved): Assume the following facts about a firm that borrows by pledging its receivables: What is the e ...
Assume the following facts about a firm that borrows by pledging its receivables:
What is the effective cost of financing stated as an annual rate?
2. Assume the following facts about a firm that borrows by pledging its receivables: What is the effective cost of financing stated as an annual rate? a. \( 23.5 \% \) b. \( 13 \% \) c. \( 13.5 \% \) d. \( 16.83 \% \)
Expert Answer
Formulas, The effective cost of financing is stated as an annual rate = (Total Interest cost and fee / Accounts Receivable pledged) Total Interest cos