Problem:
Halka company is a no-growth firm. It's sales fluctuate seasonally cuasing total assets to vary from $395,000 to $410,000 but fixed assets remain constant at $260,000.
Requirement:
Question: If the firm follows a maturity matching (or moderate working capital financing policy) what is the most likely total of long term debt plus equity capital?
Note: Please explain comprehensively and give step by step solution.