Working Capital Management We know that working capital is current assets minus current liabilities, often times a company can have too much or too little working capital. In the discussion talk about why a business may not want to hold too much or too little working capital. The general rule is that working capital is between 1 and 2 and not too much above or below that. Examine the key reasons why a business may not want to hold too much or too little working capital. Provide examples that illustrate the consequences of either situation. Explain alternative ways a business can use free cash flow. Provide examples. Be sure to respond to at least one of your classmates' posts. Read a post by one of your peers and provide a substantive response, making sure to extend the conversation by asking questions, offering rich ideas, or sharing personal connections.
Working Capital Management We know that working capital is current assets minus current liabilities, often times a company can have too much or too little working capital. In the discussion talk about why a business may not want to hold too much or too little working capital. The general rule is that working capital is between 1 and 2 and not too much above or below that. Examine the key reasons why a business may not want to hold too much or too little working capital. Provide examples that illustrate the consequences of either situation. Explain alternative ways a business can use free cash flow. Provide examples. Be sure to respond to at least one of your classmates' posts. Read a post by one of your peers and provide a substantive response, making sure to extend the conversation by asking questions, offering rich ideas, or sharing personal connections.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Working Capital Management
We know that working capital is current assets minus current liabilities, often times a company can have too much or too little working capital. In the discussion talk about why a business may not want to hold too much or too little working capital. The general rule is that working capital is between 1 and 2 and not too much above or below that.
- Examine the key reasons why a business may not want to hold too much or too little working capital. Provide examples that illustrate the consequences of either situation.
- Explain alternative ways a business can use free cash flow. Provide examples.
Be sure to respond to at least one of your classmates' posts.
- Read a post by one of your peers and provide a substantive response, making sure to extend the conversation by asking questions, offering rich ideas, or sharing personal connections.
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education