Question
Firms A and B are otherwise identical in all respects, but at the end of a particular year firm A has a higher ratio of
Firms A and B are otherwise identical in all respects, but at the end of a particular year firm A has a higher ratio of Accounts Payable to Sales than firm B. Which firm has the higher free cash flow that year?
a. Both firms have the same FCF
b. Firm B
c. Firm A
d. Impossible to tell based on the information given
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Bond Markets Analysis and Strategies
Authors: Frank J.Fabozzi
9th edition
133796779, 978-0133796773
