Quiz Ch 20 – Determining Optimal Credit Amount: Considering Incremental Costs and Benefits

Fundamentals of Corporate Finance

Ross, Westerfield, and Jordan

13th Edition

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What factor should be equated with the incremental costs of carrying increased accounts receivable in order to determine the optimal amount of credit?

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  • Search Terms: a) accounts amount bad benefit carrying cash costs credit cycle. b) debts. e) decrease decreasing equates flows from gain in increase increased incremental incremental: inventory level. c) net of optimal profits. receivable sales. d) the to
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