Fundamentals of Corp. Fin. (Looseleaf)(Custom)
Fundamentals of Corp. Fin. (Looseleaf)(Custom)
15th Edition
ISBN: 9781269945646
Author: Berk
Publisher: PEARSON
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Chapter 19, Problem 2CC
Summary Introduction

Working Capital: It is that part of capital which is used in the daily operational business of a company and. it is calculated by subtracting current assets from current liabilities.

Firm value: It refers to the quantitative value of a business in the relevant market. The decisions related to choice of raise funds may affect the value of the firm.

To Explain: The impact of working capital on a firm’s value.

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Working capital explained; Author: The Finance Storyteller;https://www.youtube.com/watch?v=XvHAlui-Bno;License: Standard Youtube License