Goals of firm''s credit standards, Finance Basics

Goals of firm's Credit Standards

The goal of the firm's credit policy is to maximize the value of such firm. To complete this goal, the evaluation of investment in receivables must involve steps as given:

1. Evaluation of incremental operating profits from increased sales

2. Evaluation of incremental investment in account receivable

3. Evaluation of incremental costs

4. Comparison of incremental profits with incremental costs

Posted Date: 1/31/2013 8:16:44 AM | Location : United States







Related Discussions:- Goals of firm''s credit standards, Assignment Help, Ask Question on Goals of firm''s credit standards, Get Answer, Expert's Help, Goals of firm''s credit standards Discussions

Write discussion on Goals of firm''s credit standards
Your posts are moderated
Related Questions
if you won the publisher''s clearing house $10 million prize (payable as 30 pmts of $250,000 and $2.5m in yr. 30) and could invest the money at 8%, would you accept an offer of $3.

Cost of Finance - Capital Structure This is the price the company pays to retail and acquire finance. To get finance a company will pay implicit costs that are commonly recogn

Government - Measuring Business Performance Government The Government is interested particularly in utility companies as KPLC, KPTC and such will offers public services -

Working Capital a) Working capital or called gross working capital also, refers as current assets. b) Net working capital refers to current assets minus current liabilities

The partners are still unhappy about one of the features of your analysis, namely your assumption that the coupon rate of the bond is equal to 6% per annum. Their thinking is that

Consider a binomial model of a risky asset with the parameters r = 0:06, u = 0:059, d = 0:0562, S 0 = 100, T = 1, 4t = 1=12. Note that u and d are monthly effective rates of retur

Advantages of Using Debt Finance Interest on debt is a tax permit able expense and as that it is reduced via the tax allowance. The cost of debt is fixed regardless of

Advantages of Floatation of New Shares 1. It facilitates the matter of securities to increase new finance, creation a company less dependent on retained earnings and banks.

the real risk-free rate of interest is 4%. inflation is expected to be 2% this year and 4% during the next 2 years. assume that the maturity risk premium is zero. what is the yield

One of the projects the US loan would fund is to build earthquake-resistant buildings. The project will begin in March 2013, last for two years and is expected to have the followin