Management of working capital - Financial Management

The first half of the chapter deals with the management of working capital, which involves decisions about the optimal overall level of current assets and the optimal mix of short-term and long-term funds used to finance the company’s assets. These decisions require an analysis of the risk and expected return trade-offs associated with the various alternative policies.

The second half of the chapter examines the various sources of short-term credit available to the firm.

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Financial Management Topics