22. Credit policy (S31.3) Look again at the last problem. Suppose (a) that it costs $95 to...

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22. Credit policy (S31.3) Look again at the last problem. Suppose

(a) that it costs $95 to classify each new credit applicant and

(b) that an almost equal proportion of new applicants falls into each of the four categories. In what circumstances should Mr. Khana not bother to undertake a credit check?

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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