The optimal amount of credit the fi rm offers is a function of the competitive conditions in

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The optimal amount of credit the fi rm offers is a function of the competitive conditions in which it fi nds itself. These conditions will determine the carrying costs associated with granting credit and the opportunity costs of the lost sales from refusing to offer credit. The optimal credit policy minimizes the sum of these two costs.

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Corporate Finance

ISBN: 9780073105901

8th Edition

Authors: Jeffrey Jaffe, Bradford D Jordan

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