Advantage to corporation of investing in working capital, Financial Management

Assignment Help:

What is the primary advantage to a corporation of investing some of its funds in working capital?

 By investing in working capital a firm acquires the liquidity it needs helping it to pay its bills. The risk of the firm is thus reduced.

 


Related Discussions:- Advantage to corporation of investing in working capital

Residual method to find cyclical variation, Residual Method We know th...

Residual Method We know that a time series consisting of annual data for longer periods is depicted by trend lines. This facilitates us to isolate the component of secular tre

Operating cycle, discuss the applicability of operating cycle in poultry in...

discuss the applicability of operating cycle in poultry industry

Types of government stocks, Types of Government Stocks Issue of Stock t...

Types of Government Stocks Issue of Stock through AuctionThe RBI, on behalf of the government, issues notification to auction government securities, stating the amount and time

Future value of an annuity, Will you please give the defination of "Future ...

Will you please give the defination of "Future Value Of An Annuity"?

Advantages and disadvantages of internal rate of return, What are the advan...

What are the advantages and disadvantages of the internal rate of return method? The internal rate of return process is a discounted cash flow method and a number expressed as

Size of the business, Size of the business / scale of the operation : the ...

Size of the business / scale of the operation : the working capital requirement of the concern are directly influence the by the size of the business which may be measured in the

Market condition affecting cost of capital, Q. Market condition Affecting c...

Q. Market condition Affecting cost of capital? Market condition: if an investor is purchasing a security where the risk of the investment in significant the opportunity for add

Calculate the price of commonwealth bonds, Calculate the Price of Commonwea...

Calculate the Price of Commonwealth bonds Commonwealth Company has a 10% coupon bond with a par value of $1000, The current yield to maturity on new bonds is 8%. If interest is

Define exchange exposure of company affect by exchange rate, Assume that yo...

Assume that your company has an equity position in a French firm. Explain the condition under which the dollar/franc exchange rate uncertainty does not comprise exchange exposure f

Under what circumstances is a warrant''s value high, Under what circumstanc...

Under what circumstances is a warrant's value high ?  Explain. A warrant's value would be elevated when the stock price, time to expiration, and/or expected stock price volatil

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd