Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN: 9781337395083
Author: Eugene F. Brigham, Phillip R. Daves
Publisher: Cengage Learning
Question
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Chapter 21, Problem 14MC
Summary Introduction

Case summary:

Chief financing officer of Company RR, a speciality coffee manufacturer, is re-thinking about its working capital policy and wants to re-new its line of credit and it wouldn’t ready to build payroll, probably forcing the company out of business.

The scare has forced the company to examine carefully about each component of working capital to make sure it is required, and decide whether the goal is to determine the line of credit are often eliminated entirely.

Previously, it has done little to look at assets and mainly because of poor communication among business functions and the decisions about working capital cannot be made at vacuum.

To discuss: Advantages and disadvantage of using short-term debts as a source of finance.

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Students have asked these similar questions
What are the benefits of using debt security?
What are the advantages and disadvantages of short-term versus long-term debt asidentified in this section?
State the disadvantages of long-term debt financing.

Chapter 21 Solutions

Intermediate Financial Management (MindTap Course List)

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