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
The director of capital budgeting for a firm has identified two mutually exclusive projects, A and B, with the following expected net cash flows: Expected Net Cash Flows Year

PBP Reciprocal PBP expresses the profitability of a project in terms of years.  It does not indicate any return as measure of investment. The PBP reciprocal has been utilized

Able, Baker and Charlie are the only three stocks in an index. The stocks will sell for $93.$312 and $78 respectively. If Baker undergoes a 2-for-1 stock split, what is the new div

After carefully reading all the available information, prepare a two page (double-spaced) essay and answer the following questions: Assume that we have the following data: C=100+0.

(i) Find out operating leverage from the following data: Sales                             Rs.50000 Variable Cost               60% Fixed Cost                   Rs.12000

Actions of Shareholders in Agency Conflict a) Disposal of assets required like collateral for the debt in this. In this case the bondholder is exposed to more risk becaus

Before purchasing insurance we have to go through different factors. Among different important factors there are two most crucial aspects we should consider before buying insurance

Timing of Investment a Stock Exchange The ideal way of creation profits on the stock exchange is to buy on the bottom of the market or lowest M.P.S and sell at the top of the

Comparison to a Competing Firm In Mergent Horizon, return to the competitor page, but now enter the list of competitors "As Defined by the Company."  From this list select a f