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Distinguish between Credit Standards and Credit Terms. When and how might a change in these policies benefit the firms value? Starting with the effect on

  1. Distinguish between Credit Standards and Credit Terms. When and how might a change in these policies benefit the firms value? Starting with the effect on revenues, trace the results of the policy change through the size and age of the receivables portfolio, the cost of financing and monitoring the receivables, the likelihood and cost of collections, and finally the impact on profit. (Explain thoroughly)

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