The financial manager of Town Ltd is concerned about the volatility of interest rates. His company needs to borrow $ 100million in 6 months time for a period of 2 years. Current interest rates are 15% per year for the type of loan that Town Ltd needs. The financial manager does not wish to pay an interest rate higher than

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Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.