Halka Company is a no-growth firm. Its sales fluctuate seasonally, causing total assets to vary from $370,000 to $410,000, but fixed assets remain constant at
Halka Company is a no-growth firm. Its sales fluctuate seasonally, causing total assets to vary from $370,000 to $410,000, but fixed assets remain constant at $260,000. If the firm follows a maturity matching (or moderate) working capital financing policy, what is the most likely total of long-term debt plus equity capital?
a. $630,000
b. $670,000
c. $410,000
d. $370,000
e. $390,000
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Authors: Yves Hilpisch
2nd Edition
1492024333, 978-1492024330
