C Company is a no-growth firm. Its annual sales fluctuate seasonally from $1,200,000 to $1,997,851, causing its current assets to vary from $146,206 to $200,740, but fixed assets remain constant at $316,765. If the firm follows a moderate (or maturity matching) working capital financing policy, what is the most likely total amount of long-term financing (that is, long-term debt plus equity capital) to support the company's working capital requirements? Round your answer to the nearest dollar, but do not include $ in your answer, e.g., xxx,xxx. Answer:
Macrohedging
Hedging or hedge accounting is a risk-mitigation technique used to protect the current financial position from potential losses. Hedging is often confused with speculating. The major difference between the two is that hedging does not involve guessing, whereas speculation is based on guessing the direction of movement of the underlying asset to book profits.
Finance Mathematics
The area of applied mathematics known as mathematical finance, also known as quantitative finance or financial mathematics is concerned with the mathematical modeling of financial markets. The application of mathematical methods to financial problems is known as financial mathematics. A financial market is a place where people can exchange low-cost financial securities and derivatives. Stocks and bonds, raw materials, and precious metals, both of which are regarded as commodities in the stock markets, are examples of securities. It uses probability, statistics, stochastic processes, and economic theory as methods.
C Company is a no-growth firm. Its annual sales fluctuate seasonally from $1,200,000 to $1,997,851, causing its current assets to vary from $146,206 to $200,740, but fixed assets remain constant at $316,765. If the firm follows a moderate (or maturity matching) working capital financing policy, what is the most likely total amount of long-term financing (that is, long-term debt plus equity capital) to support the company's working capital requirements? Round your answer to the nearest dollar, but do not include $ in your answer, e.g., xxx,xxx.
Answer:
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
