Why do firms grant free credit? Would it be more efficient if all sales were for cash

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Why do firms grant “free” credit? Would it be more efficient if all sales were for cash and late payers were charged interest?

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Principles of Corporate Finance

ISBN: 978-0072869460

7th edition

Authors: Richard A. Brealey, Stewart C. Myers

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Question Posted: Jun 08, 2011 07:01 AM

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Why do firms grant free credit? Would it be more efficient if all sales were for cash

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Principles of Corporate Finance

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