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Discuss an increase in interest rates

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Reference no: EM131121330

Discuss how each of the following factors would tend to affect a firm’s credit extension policies:
a. A shortage of working capital
b. An increase in output to the point where the firm is operating at full production capacity
c. An increase in the firm’s profit margin (i.e., its profit contribution ratio)
d. An increase in interest rates (i.e., borrowing costs)

Reference no: EM131121330

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