Matching approach - financing current assets, Finance Basics

Assignment Help:

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


Related Discussions:- Matching approach - financing current assets

Example of miller-orr model, Example of Miller-Orr Model XYZ's managem...

Example of Miller-Orr Model XYZ's management has put the minimum cash balance to be equivalent to Sh.10, 000. The standard deviation of daily cash flow is of Sh.2, 500 and the

Risk adjusted discounting rate – methods of computing cost, Risk Adjusted D...

Risk Adjusted Discounting Rate - Methods of Computing Cost of Capital This method is used to establish the discounting rate to be used for a provided project. The cost of capi

What are the types of orders, What are the Types of orders (i) Spot ...

What are the Types of orders (i) Spot Delivery: Spot delivery means delivery and payment on the same day as date of the contract or on the next day. (ii) Hand Delivery:

#title.ASF, Ask questioAustralian’s Speleological App Projectn #Minimum 100...

Ask questioAustralian’s Speleological App Projectn #Minimum 100 words accepted#

Market for funds, Market For Funds Market for Funds and Financial Inst...

Market For Funds Market for Funds and Financial Institutions in Middle Asia 1. Financial markets refer to an elaborate system of the financial institution and arrange

Strike price and putable bond, Analysis of the bond issue (a) Show that...

Analysis of the bond issue (a) Show that the price of the bond is equal to that of a portfolio which contains i) a long position in an option-free but otherwise identical co

Nash equilibrium, Suppose that two players are playing the following game. ...

Suppose that two players are playing the following game.  Player A can choose either Top or Bottom, and Player B can choose either Left or Right.  The payoffs are given in the foll

Calculating cost of purchasing & prepare income, The Jacobs company needs t...

The Jacobs company needs to acquire a new lift truck for transporting its final product to the warehouse. One alternative is to purchase the truck for $45,000. Maintenance of th

Basel committee on banking supervision, Question 1: ‘The Basel II frame...

Question 1: ‘The Basel II framework provides a range of options for determining the capital requirements for, inter-alia, credit risk and operational risk to allow banks and s

Financial cycle, what is the applicability of a financial cycle to poultry...

what is the applicability of a financial cycle to poultry?

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