Corporate Finance (The Mcgraw-hill/Irwin Series in Finance  Insurance  and Real Estate)
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Chapter 26, Problem 15QP

a.

Summary Introduction

To explain: The current assets of firm are financed.

Short Term Financial Policy:

The management of every company maintains a plan for short term investment. The short term investment is needed to fulfill the short term financial needs of the company. Every company has different short term financial policy related to the nature and size of the business.

b.

Summary Introduction

To explain: The firm having larger investment and reason for it.

c.

Summary Introduction

To explain: The reason for the company incurring carrying cost or shortage cost and reason of it.

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