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Site Title: Fundamentals of Financial Management, Summary of Results


thirteenth edition
100% Correct of 5 Scored items:
Book Title: Fundamentals of Financial Management,
5 Correct: 100%
thirteenth edition
0 Incorrect: 0%
Book Author: Van Horne/Wachowicz
More information about scoring
Location on Site: Student Resources > Chapter 8 > True or false
questions
Date/Time December 8, 2022 at 12:42 PM (UTC/GMT)
Submitted:

1. From a financial analyst's viewpoint, "gross working capital" simply refers to current assets.

Your Answer: True

2. The optimal level of working capital is that which provides a 2:1 ratio of current assets to
current liabilities.

Your Answer: False

3. The level of current assets to maintain and how to finance current assets are interdependent.

Your Answer: True

4. The hedging approach to financing involves matching maturities of financing with specific
assets.

Your Answer: True

5. In general, long-term debt costs less than short-term debt.

Your Answer: False

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