F371 Essn. of Corporate Finance >C< By Ross MCG Custom ISBN 9781259320576
F371 Essn. of Corporate Finance >C< By Ross MCG Custom ISBN 9781259320576
14th Edition
ISBN: 9781259320576
Author: Ross, Westerfield, Jordan
Publisher: MCG CUSTOM
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Chapter 16, Problem 16.3C
Summary Introduction

To discuss: The characteristic of a flexible short-term financial policy.

Introduction:

The firm adopts various short-term financial policies that measures the part of short-term and long-term debt used in current assets.

  • The restrictive shorter financial policy is the high portion of short-term debt comparatively to long-term debt.
  • The flexible policy is the low portion of short term debt comparatively to long-term debt.

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