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    Principles of Corporate Finance Study Set 4
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    Exam 14: Working Capital and Management of Current Assets
  5. Question
    Too Little Current Liability Financing Reduces Profitability, Whereas Too Much
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Too Little Current Liability Financing Reduces Profitability, Whereas Too Much

Question 113

Question 113

True/False

Too little current liability financing reduces profitability, whereas too much of this financing increases the risk of not being able to pay debts as they come due.

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