Current assets of a business firm should be financed through.
Current liability only
Long term liability only
Partly from both types i.e long and short term liabilities.
None of these
Other things remaining the same, an increase in the tax rate on corporate profits will.
Make debt relatively cheaper
Make debt relatively less cheap home
No impact on the cost of debt
Proportion of debt and equity used for financing the operation of business.
Capital structures
Capital gaining
Financial leverage
All of these
Higher debt equity ratio (Debt/Equity) results in.
Lower financial risk
Higher degree of operating risk
Higher degree of financial risk
Current Assets are those assets which got converted into cash.
Within six months
Within one year
Between one and three year
Capital Budgeting deals with.
Working capital
Management of fixed assets
Management of dividend
Financial leverage is called favorable if.
Return on Investment is lower than cost of debt
ROI is higher than cost of debt
Debt is nearly available
Financial planning arrives at.
Minimizing the external borrowing by resorting to equity issues.
Entering that the firm always have synthetically more funds than required so that there is no pancity of funds.
Ensuring that the firm paces neither a shortage nor a glut of unusable funds.
Factors affecting the working capital of the firm.
Length of operating cycle
Credit policy
Business cycle fluctuation
