The Basic Relationship for Determining External Capital Required Is

question 10

Multiple Choice

The basic relationship for determining external capital required is

• A)External capital required = − operating cash flow + investment in net working capital.
• B)External capital required = − operating cash flow + investment in net working capital + investment in fixed assets.
• C)External capital required = − operating cash flow + investment in net working capital + investment in fixed assets + dividends.
• D)None of these answers are correct.

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