Goals of firm''s credit standards, Finance Basics

Assignment Help:

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


Related Discussions:- Goals of firm''s credit standards

Stock repurchase, Stock Repurchase The company can buy back also sever...

Stock Repurchase The company can buy back also several of its outstanding shares instead of paying cash dividends. This is identified as stock repurchase and or bought back or

Example of eoq assumptions, Example of EOQ Assumptions ABC Ltd require...

Example of EOQ Assumptions ABC Ltd requires 2,000 units of a component in its manufacturing method in the coming year that costs of Sh.50 each. The items are obtainable locall

calculate the growth rate, The Mountain Fresh Company had earnings per sha...

The Mountain Fresh Company had earnings per share (EPS) of $6.32 in 2006 and $11.48 in 2011. The company pays out 30 percent of its earnings as dividends per share (DPS), and the

Explain the different life insurance products, Question: Company XYZ cu...

Question: Company XYZ currently operates a General Insurance company and would like to start selling life insurance products. The intended market is composed of both financial

Working capital, Working Capital a) Working capital or called gross wo...

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

project on financial planning, Financial Planning Project Instructions: ...

Financial Planning Project Instructions: You will serve as a financial advisor for your client to develop a financial plan. You can compile all the worksheets introduced in eac

Channelling of funds from savers to spenders important, How is the channell...

How is the channelling of funds from savers to spenders very important? The channelling of funds by savers to spenders is very significant for two purposes: • One, lender-sa

Finance, the real risk-free rate of interest is 4%. inflation is expected t...

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

Dow theory - stock exchange, Dow Theory - Stock Exchange This theory d...

Dow Theory - Stock Exchange This theory depends upon profiting of prices of a chart of secondary movement. The principal objective is to discover whilst there is a change in t

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd