1 why is no single working capital investment and financing, Ask an Expert

Finance

1. Why is no single working capital investment and financing policy necessarily optimal for all firms? What additional factors need to be considered in establishing a working capital policy?

2. a. Which of the following working capital financing policies subjects the firm to a greater risk?

i. Financing permanent current assets with short-term debt

ii. Financing fluctuating current assets with long-term debt

b. Which policy will produce the higher expected profitability?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92090318

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