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Suppose you can decrease the cash on hand and the company will require holding Net Working Capital (including cash) equal to 4% of the next year's sales going forward. This will result in a very large reduction in NWC in 2007. You will also require to project 2012 Sales to calculate the NWC in 2011.
what are the arguments in favour of profit maximization?
This question tested the core area of specifically gradually consolidation and acquisitions (control to control). The principle of calculation of goodwill at the date where control
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