Matching approach - financing current assets, Finance Basics

Matching Approach - Financing Current Assets

This approach is further referred to as the hedging approach. Beneath this approach, the firm adopts a financial plan that involves the matching of the expected life of assets along with the expected life of the origin of funds raised to finance assets. Hence the firm uses short-term funds to finance temporary assets and long term funds to finance permanent assets. Permanent assets refer permanent current assets and to fixed assets. This approach can be signifying by the following figure:

408_Matching Approach - Financing Current Assets.png

Posted Date: 1/31/2013 7:53:50 AM | Location : United States







Related Discussions:- Matching approach - financing current assets, Assignment Help, Ask Question on Matching approach - financing current assets, Get Answer, Expert's Help, Matching approach - financing current assets Discussions

Write discussion on Matching approach - financing current assets
Your posts are moderated
Related Questions
For the set of activities shown in the table below, draw the total expenses vs. time curve using the following data: The labor rates are as follows: Labor # 1 (L1) rate = 30

Internal finance can avoid the agency costs of debt and equity finance. In practice it is the most important source of funding.   (a)  Discuss potential problems of internal finan

A firm's current ratio is 1.5, and its quick ratio is 1.0. If its current liabilities are $10,000, what are its inventories?   a Current Ratio

Question: (a) (i) Define the term multicollinearity. (ii) Explain why it is important to guard against multicollinearity. (b) (i) Sometimes we encounter missing value

Discuss the applicabilty of an operating cycle to poultry business(consider broilers)

Management of Sole Proprietorship  In sole proprietorship the owner is usually in charge of day to day running of the business. If the business is large he may give some duties

Clientele Effect Theory Advance via Richardson Petit in 1977.It stated such different types of groups of shareholders or clientele have different type of preferences for divid

Foreign Credit Insurance Association (FCIA) An agent of the Export/Import Bank, FCIA gives exporters with insurance coverage beside both commercial and political risk. The main

according to given specialization take down an industry and investigate its managerial hierarchy to describe each of one of the managerial work level functioning

1.  Suppose you would like to buy a house and you decided you can pay 3500 per month for 30 years.  Your bank has approved you for a 30-year fixed rate mortgage loan at a quoted AP