Some firms finance their permanent working capital with short-term liabilities (commercial paper and short-term notes). Explain the

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Some firms finance their permanent working capital with short-term liabilities (commercial paper and short-term notes). Explain the impact of this decision on the profitability and risk of these firms.

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Fundamentals Of Financial Management

ISBN: 9780273713630

13th Revised Edition

Authors: James Van Horne, John Wachowicz

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Question Posted: Dec 07, 2015 05:41 AM

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Some firms finance their permanent working capital with short-term liabilities (commercial paper and short-term notes). Explain the

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In general shortterm debt carries a lower explicit cost of capital The decision to finance the perma...View the full answer

Fundamentals Of Financial Management

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