Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Halka Company is a no-growth firm. Its sales vary seasonally, causing net assets to differ from $320,000 to $410,000; however fixed assets remain constant at $260,000. If the firm follows a maturity matching (or moderate) working capital financing policy, then what is the most likely total of long-term debt plus equity capital?

a. $260,642

b. $274,360

c. $288,800

d. $304,000

e. $320,000

Lower total asset range $320,000

Upper total asset range $410,000

Minimum total + Min. CA = $320,000 = LT Debt + Equity

A maturity matching policy implies that the fixed assets and permanent current assets are financed with the long-term sources.  This is its most probable level of long-term financing.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M915784

Have any Question? 


Related Questions in Basic Finance

Suppose you expected the return on the market to be 10 and

Suppose you expected the return on the market to be 10% and the return on the risk-free asset to be 2%. If you are considering a stock with a beta of 1.2, what is the expected return on this stock according to the securi ...

1 what are the advantages and disadvantages of usinga

1. What are the advantages and disadvantages of using (a) figures, (b) tables, and (c) text to report the results of experiments in the research report? 2. Differentiate between random sampling and random assignment. Whi ...

Norman jones an economic historian at the university of

Norman Jones, an economic historian at the University of Utah, has described the view of the ancient Greek philosopher Aristotle on interest: Aristotle defined money as a good that was consumed by use. Unlike houses and ...

Name the industrywith this case a comparison is made

NAME THE INDUSTRY With this case, a comparison is made between three firms in different industries using net profit margin, total asset turnover and current ratio. 1. Apple Fiscal year 2010 ended September 25, 2010, and ...

In a column in the new york times harvard economist edward

In a column in the New York Times, Harvard economist Edward Glaeser argues: "Theory and data both predict that the 1.2 percentage point drop in real interest rates that America experienced between 1996 and 2006 should ca ...

1 profits might be compared with sales assets or

1. Profits might be compared with sales, assets, or stockholders' equity. Why might all three bases be used? Will trends in these ratios always move in the same direction? 2. What is the advantage of segregating extraord ...

The current balance sheet shows a total common equity of 3

The current balance sheet shows a total common equity of 3 million dollars, the company has 125000 shares outstanding, sell at price 50 dollares per share. How much do the firm's market value and book value differ?

Prepare a career preparation portfolioto prepare for your

Prepare a career preparation portfolio. To prepare for your job search, conduct research and meet with people who can help you. First, target specific people within companies where you might like to work. You will need t ...

1 what is the only relevant decision for independent

1. What is the only relevant decision for independent projects if an unlimited capital budget exists? How does your response change if the projects are mutually exclusive? How does your response change if the firm faces ...

Locate a newspaper or magazine article that reports a

Locate a newspaper or magazine article that reports a behavioral science research project. a. Determine whether the project is a descriptive, a correlational, or an experimental research design. b. What variables are mea ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen