8.7 Review Questions: Chapter Eight
Review Questions: Chapter Eight
- State the difference between Vertical- and Horizontal-Capital Structure Theories.
- How are Temporary- and Permanent-Working Capital different from one another? What is the distinguishing criterion?
- In words, explain the Matching Principle.
- Why would an aggressive manager mismatch his/her firm’s horizontal capital position? In what manner would s/he do so?
- Provide some examples of both Internal and External Funds.