If a firm were contemplating increasing the cash discount it offers its credit customers for early payment,

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If a firm were contemplating increasing the cash discount it offers its credit customers for early payment, what key variables would need to be considered when quantitatively analyzing this decision? How do the variables used in this analysis differ from those considered when analyzing a potential change in the firm’s credit standards?
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Introduction to Corporate Finance

ISBN: 978-0324657937

2nd edition

Authors: Scott B. Smart, William L Megginson

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