Halka Company is a no-growth firm. Its sales fluctuate seasonally, causing total assets to vary from P320,000 to P410,000, but fixed assets remain constant at P260,000. If the firm follows a maturity matching (or moderate) working capital financing policy, what is the most likely total of long-term debt?

Halka Company is a no-growth firm. Its sales fluctuate seasonally, causing total assets to vary from P320,000 to P410,000, but fixed assets remain constant at P260,000. If the firm follows a maturity matching (or moderate) working capital financing policy, what is the most likely total of long-term debt?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 7P

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