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
Clemson Software is considering a new project whose data are shown below. The required equipment has a 3-year tax life, after which it will be worthless, and it will be depreciate

what makes a preference shares a hybrid?

Last year Nymphe Technologies had $450 million of sales and $270 million of fixed assets, so its FA/Sales ratio was 60%.  However, its fixed assets were used at only 75% of capacit

At t = 0, a 3-year, 7% coupon corporate bond with face value $1,000 is trading at a credit spread of 15%. The risk free rate is constant and equal to 4% for all maturities. The rec

how can I get?

Market Segmentation Theory This theory states as the main investors lenders and borrowers are confined to a particular segment of the market and will not change even whether t

Suppose the ABC Corporation is currently all-equity financed and would like to increase its value by issuing debt. The firm has annual earnings before interest and taxes of $7,0

If the winner’s prize increases at the same rate (8.43%), what will it be in 2041?

Basic EOQ Model The basic inventory decision model is Economic Order Quantity or called EOQ model. This model is specified via the following equation as: Whereas:Q is

AsStudents will analyze and synthesize the financial reports of an organization of their choice and present their findings in a PowerPoint presentation (with completed Notes sectio