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DETERMINING FINANCING MIX

DETERMINING FINANCING MIX Apart from the profitability risk trade off, another important ingredient of the theory of working capital management is determining the financing mix. One of the most important decisions, in other words, involved in the management of working...

Nature of Trade off

Nature of Trade off If a firm wants to increase its profitability, it must also increase its risk. If it is to decrease must decrease profitability. The trade off these variables is that regardless of how increases its profitability through the manipulation of working...