Share
Explore BrainMass

Working Capital Management Questions

What are the two principal reasons for holding cash? Can a firm estimate its target cash balance by summing the cash held to satisfy each of the two reasons?

What are the four elements of a firm's credit policy? To what extent can firms set their own credit policies as opposed to having to accept policies that are dictated by "the competition"?

Solution Preview

What are the two principal reasons for holding cash? Can a firm estimate its target cash balance by summing the cash held to satisfy each of the two reasons?

The two principal reasons for holding cash are for transactions and compensating balances. The ...

Solution Summary

This posting provides a detailed solution to the student's questions.

$2.19