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Lyon’s Furniture is advertising a “Ho! Ho! Hold the Payments for
2 Full Years!” sale…. 1 answer below » Lyon’s Furniture is advertising a “Ho! Ho! Hold the Payments for
2 Full Years!” sale. Lyon’s advance factors all of its receivables
to Citibank. Citibank has credit checking terminals in all of the
company’s stores. Once a customer is approved, Citibank assumes the
liability of collecting the receivable from the customer (in 2
years) and immediately advances Lyon’s percentage of the sale
price. If Citibank wants to earn 14% on invested funds to cover the
cost of capital and default risk, then what percentage of the
purchase price will it advance to Lyon’s? (Round to 2 decimal
places). Aug 05 2015 05:45 AM
