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When a company needs additional funding, what are the traditional sources of funding that the treasurer typically considers?
When a company needs additional funding, what are the traditional sources of funding that the treasurer typically considers?
- Equity issuance and cash extraction
- Working capital management and equity issuance
- Debt and equity issuance (correct)
- Debt and working capital management
Why might a treasurer explore working capital management as a funding source?
Why might a treasurer explore working capital management as a funding source?
- Because it is a quick way to raise funds
- Because it is a long-term investment strategy
- Because the cost of traditional funding sources is too high (correct)
- Because it is a cheap source of funding
What is a potential benefit of working capital management?
What is a potential benefit of working capital management?
- Decreasing the company's equity
- Increasing the company's debt
- Reducing the company's sales volume
- Unlocking a significant source of cash (correct)
How does working capital tend to change when corporate sales volume changes?
How does working capital tend to change when corporate sales volume changes?
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What is involved in working capital management?
What is involved in working capital management?
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