Identify a financial ratio that can help financial managers

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Reference no: EM132059656

(a) How does working capital differ from real capital investments?

(b) Identify a principle that firms can efficiently use to determine whether or not it is profitable to hold a specific current asset or current liability, and describe how to use it?

(c) Why do firms managers usually have to spend a disproportionate amount of time managing their working capital?

(d) Describe a working capital management technique that firms use to reduce their illiquidity risk, default risk, or interest rate risk.

(e) Identify a financial ratio that can help financial managers identify a working capital management problem, and explain how it can do this.

Reference no: EM132059656

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