Total of long-term debt plus equity capital


Halka Company is a no-growth firm. Its sales fluctuate seasonally, causing total assets to vary from $395,000 to $410,000, but fixed assets remain constant at $260,000. 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?

1. $450,300

2. $308,100

3. $406,850

4. $395,000

5. $489,800

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Finance Basics: Total of long-term debt plus equity capital
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