Sometimes a firm sells its receivables at a discount to a wholly owned captive finance company. This
Question:
Sometimes a firm sells its receivables at a discount to a wholly owned captive finance company. This captive finance company is partly financed by the parent, but it also issues substantial amounts of debt. What are the possible advantages of such an arrangement?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Captive finance companies may offer organizational and marketing benefits in addition to financi...View the full answer
Answered By
Sidharth Jain
My name is Sidharth. I completed engineering from National Institute of Technology Durgapur which is one of the top college in India. I am currently working as an Maths Faculty in one of the biggest IITJEE institute in India. Due to my passion in teaching and Maths, I came to this field. I've been teaching for almost 3 years.
Apart from it I also worked as an Expert Answerer on Chegg.com. I have many clients from USA to whom I teach online and help them in their assignments. I worked on many online classes on mymathlab and webassign. I guarantee for grade 'A'.
3+ Reviews
10+ Question Solved
Related Book For 
Principles of Corporate Finance
ISBN: 978-0072869460
7th edition
Authors: Richard A. Brealey, Stewart C. Myers
Question Posted:
