In an ideal economy, a fi rm could perfectly predict its short-term uses and sources of cash,

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In an ideal economy, a fi rm could perfectly predict its short-term uses and sources of cash, and net working capital could be kept at zero. In the real world, net working capital provides a buffer that lets the fi rm meet its ongoing obligations. The fi nancial manager seeks the optimal level of each of the current assets. LO.1

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Corporate Finance

ISBN: 9780073105901

8th Edition

Authors: Jeffrey Jaffe, Bradford D Jordan

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