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ABC Co follows a flexible short-term financing policy. The firm produces winter boots, which is a cyclical business. When the firm needs to pay for
ABC Co follows a flexible short-term financing policy. The firm produces winter boots, which is a cyclical business. When the firm needs to pay for large inventories in advance of peak sales, the firm will: Sell one of the non-current assets. Sell marketable securities. Negotiate a short-term bank loan. Issue commercial paper with a maturity of 270 days or less. Borrow from a family member
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