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Which of the following statements in true? I) The credit conversion cycle (CCC) of any firm is always positive. II) The longer a firm's cash
Which of the following statements in true?
I) The credit conversion cycle (CCC) of any firm is always positive.
II) The longer a firm's cash conversion cycle, the more working capital it has, and the more cash it needs to carry to conduct its daily operations.
III) Permanent reductions in working capital requirements increase shareholder value because they are associated with larger positive free cash flows for the firm.
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