One of the key reasons that businesses fail is due to improper capital planning and a general lack of working capital (aka liquidity). It also happens to be one of the key reasons why people fail too. In personal finance, we know that you should have 3 to 6 months’ worth of money set aside for emergencies, but what does it take to make sure that a business is properly liquid?
One of the key reasons that businesses fail is due to improper capital planning and a general lack of working capital (aka liquidity). It also happens to be one of the key reasons why people fail too. In personal finance, we know that you should have 3 to 6 months’ worth of money set aside for emergencies, but what does it take to make sure that a business is properly liquid?
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter21: Dynamic Capital Structures And Corporate Valuation
Section: Chapter Questions
Problem 1MC: David Lyons, CEO of Lyons Solar Technologies, is concerned about his firm’s level of debt financing....
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