Advantages for giving Cash Discount
What are various advantages for giving Cash Discount?
Expert
Advantages for giving Cash Discount:
A) It enhances cash flow or liquidity.
B) It too raises ability to pay since buyer sees discount as income therefore, he will surely to pay and its result will on his capability to pay.
C) Sometime cash discount is obliging for good bargaining with the seller.
Suppose a firm's common stock paid a dividend of $1.75 yesterday. You expect the dividend to grow at the rate of 8% per year for the next 3 years, if you buy the stock, you plan to hold it for 3 years and then sell it. Q : Contingent exposure and its benefits Describe the contingent exposure and also discuss some of the benefits of using currency options in order to maintain this type of currency exposure.
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