CORPORATE FINANCE
CORPORATE FINANCE
12th Edition
ISBN: 9781307702804
Author: Ross
Publisher: MCG/CREATE
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Chapter 28, Problem 6CQ

Credit Period Length In each of the following pairings, indicate which firm would probably have a longer credit period and explain your reasoning.

  1. a. Firm A sells a miracle cure for baldness; Firm B sells toupees.
  2. b. Firm A specializes in products for landlords; Firm B specializes in products for renters.
  3. c. Firm A sells to customers with an inventory turnover of HI times; Firm B sells to customers with an inventory turnover of 20 times.
  4. d. Firm A sells fresh fruit; Firm B sells canned fruit.
  5. e. Firm A sells and installs carpeting; Firm B sells rugs.
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