Financial Management - Chapter 18
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• Permanent Assets (those held 1 year)– should be financed with permanent andspontaneous sources of financing.• Temporary Assets (those held • Permanent Financing– intermediate-term loans, long-term debt,preferred stock, common stock• Spontaneous Financing– accounts payable that arise spontaneouslyin day-to-day operations (trade credit,wages payable, accrued interest and taxes)• Short-term financing– unsecured bank loans, commercial paper,loans secured by A/R or inventory...
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Financial Management - Chapter 18
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Financial Management - Chapter 18
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