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23 March, 18:22

Which one of the following is a working capital decision? A. How should the firm raise additional capital to fund its expansion? B. What debt-equity ratio is best suited to the firm? C. What is the cost of debt financing? D. Which type of debt is best suited to finance the inventory? E. How much cash should the firm keep in reserve?

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  1. 23 March, 21:07
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    The correct answer is letter "E": How much cash should the firm keep in reserve?

    Explanation:

    Working capital decisions imply working in capital cycles. They take into consideration interest rates, debtors management, and the company's financing in the short run. The working capital decisions also ensure that the organizations have enough cash to pay its bills and determine how much of the cash flow should be stored in the firm's reserve.
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Home » Business » Which one of the following is a working capital decision? A. How should the firm raise additional capital to fund its expansion? B. What debt-equity ratio is best suited to the firm? C. What is the cost of debt financing? D.
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