CURRENT ASSETS MANAGEMENT: VALUE BASED WORKING CAPITAL DECISIONS (3/5) 28th October 2009 @ 4pm

CURRENT ASSETS MANAGEMENT: VALUE BASED WORKING CAPITAL DECISIONS E-mail: GRZEGORZ.MICHALSKI@UE.WROC.PL www: HTTP://MICHALSKIG.UE.WROC.PL/ ph.: 0048503452860 Next lecture: 4th November 2009.

Example NWC-1a.

Example NWC-2.

Example NWC-1b What will change if: Long-term debt share in aggressive strategy = 35% with long-term debt rate = 11% and short-term debt = 9% and with equity cost rate 28% Long-term debt share in compromise strategy = 75% with long-term debt rate = 10% and short-term debt = 8% and with equity cost rate 26% Long-term debt share in conservative strategy = 95% with long-term debt rate = 9,5% and short-term debt = 7,5% and with equity cost rate 24,5%