Maturity matching working capital policy
WebIf the firm follows a moderate (or maturity matching) working capital financing policy, what is the most likely total amount of long-term financing This problem has been solved! You'll get a detailed solution from a subject matter expert that helps you learn core concepts. See Answer Question: a ABC Company is a no-growth firm. WebIf the firm follows a maturity matching, or moderate, working capital financing policy, what is the likely level of its long-term debt and equity financing? Please show detailed steps!! Thank You! Miletkov company's total assets fluctuate between $320000 and $410000, while its fixed assets remain constant at 260000.
Maturity matching working capital policy
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WebThe maturity matching principle specifies that the life of an asset and the length of the loan used to finance it should be approximately equal. A company has two categories of assets. The first category is NWC which is the difference between current assets and … WebIts sales fluctuate seasonally, causing total assets to vary from $320,000 to $410,000, but fixed assets remain constant at $260,000. If the firm follows a maturity matching (or moderate) working capital financing policy, what is the most likely total of long-term debt plus equity capital? a.
WebMaturity Matching Approach This strategy of financing the working capital is with moderate risk and moderate profitability. In the maturity matching approach, each of the assets would be financed by a debt instrument of roughly the same maturity. WebMaturity Matching Approach This strategy of financing the working capital is with moderate risk and moderate profitability. In the maturity matching approach, each of …
WebIf the firm follows a maturity matching (or moderate) working capital financing policy, 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 Expert's answer e. $320,000 Web9 apr. 2024 · Working Capital Policy: Aggressive & Defensive. 1. Conservative Approach. A conservative strategy suggests not to take any risk in working capital management and to carry high levels of current assets in relation to sales. Surplus current assets enable the firm to absorb sudden variations in sales, production plans, and …
WebUnder this strategy, working capital maintained is relatively not too high (conservative) nor too low (aggressive). This is also known as balanced policy. 4. Matching Policy – This … how to wash a 4 wheelerWebIf the firm follows a maturity matching, or moderate, working capital financing policy, what is the likely level of its long-term debt and equity financing? a. $274, b. $288, c. … how to wash 2 way tricotWebThe risk and return implications of alternative approaches to working capital financing policy. The Importance of Managing and Accumulating Working Capital. Working capital is the amount of the firm’s current ... (Maturity Matching) Finance fixed assets and permanent current assets with LT funds and temporary current assets with ST funds ... how to wash a 15 pound weighted blanketWeba. $274,360 b. $288,800 c. $304,000 d. $320,000 ANS: D Minimum level of total assets:$320,000= LT Debt + Equity A maturity matching policy implies that fixed assets and permanent current assets are financed with long-term sources. Since the minimum balance of its total assets is $320,000, this is its most likely level of long-term financing. 32. how to wash a babyWeb5 mei 2014 · In this strategy, the level of working capital and current assets (inventory, accounts receivables, and, most importantly, liquid cash or … original candy coWebA conservative financing policy is one in which the firm finances all of its fixed assets with long-term capital and part of its permanent net operating working capital with short-term, nonspontaneous credit. c. If a company receives trade credit under terms 2/10, net 30, this implies the company has 10 days of free trade credit. d. original candy crunch gameWebAnswer to Question #7088 in Finance for LaMarcus Streeter. 3. Halka Company is a no-growth firm. Its sales fluctuate seasonally, causing total assets to vary from $320,000 to $410,000, but fixed assets remain constant at $260,000. If the firm follows a maturity matching (or moderate) working capital financing policy, what is the most likely ... original candy land board