Describe how a firms net working capital (NWC) is measured and how the NWC-to-total-assets ratio is calculated.

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Describe how a firm’s net working capital (NWC) is measured and how the NWC-to-total-assets ratio is calculated. What does this ratio measure?

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Entrepreneurial Finance

ISBN: 978-0538478151

4th edition

Authors: J . chris leach, Ronald w. melicher

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Question Posted: Aug 13, 2012 10:04 PM

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Describe how a firms net working capital (NWC) is measured and how the NWC-to-total-assets ratio is calculated.

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Net working capital is measured by subtracting current liabilities from current ...View the full answer

Entrepreneurial Finance

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