Corporate Finance (The Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
Corporate Finance (The Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
11th Edition
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
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Chapter 26, Problem 7CQ
Summary Introduction

To explain: The net working capital is positive in real economy. As in ideal economy the net working capital is zero.

Net working capital:

The total amount of current assets and the current liability of the company is net working capital. The company can use working capital to fulfill the short term needs of the company. The company has high net working capital and it is considered as the growing company.

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