Lecture Fundamentals of financial management: Chapter 9 - Gregory A. Kuhlemeyer, Carroll College, Waukesha
Lecture Fundamentals of financial management: Chapter 9 - Gregory A. Kuhlemeyer, Carroll College, Waukesha
In the previous chapter, we were occupied with questions concerning the optimal level of current assets for the firm. By examining the trade-off between profitability and risk, we were able to determine, generally, the proper level of current assets that the firm should carry. Once the overall level of current assets is determined, other questions remain. How much should be carried in cash? How much should be carried in marketable securities? We are going to find out how to answer these question