How can one distinguish between a relaxed but rational working capital policy and a situation in which

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How can one distinguish between a relaxed but rational working capital policy and a situation in which a firm simply has excessive current assets because it is inefficient? Does SKI’s working capital policy seem appropriate?

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Corporate Finance A Focused Approach

ISBN: 978-1439078082

4th Edition

Authors: Michael C. Ehrhardt, Eugene F. Brigham

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Question Posted: Sep 23, 2011 07:10 AM

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How can one distinguish between a relaxed but rational working capital policy and a situation in which

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SKI may choose to hold large amounts of inventory to avoid the costs of runnin...View the full answer

Corporate Finance A Focused Approach

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