If easing a firm's credit policy lengthens the collection period and results in a worsening of the

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If easing a firm's credit policy lengthens the collection period and results in a worsening of the aging schedule, then why do firms take such actions?

A. It normally stimulates sales.

B. To improve product quality.

C. To increase the firms deferral period for payables.

D. All of the statements above are correct

Related Book For answer-question

Introduction to Corporate Finance

ISBN: 978-0324657937

2nd edition

Authors: Scott B. Smart, William L Megginson

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Posted Date: Jul 02, 2019 06:36 AM

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If easing a firm's credit policy lengthens the collection period and results in a worsening of the

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The lengening of collection period will attract ... View the full answer

Introduction to Corporate Finance

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