The optimal level of working capital investment is the level that is expected to _____.
A) maximize return on total assets
B) maximize earnings per share
C) maximize shareholder wealth
D) minimize interest expenses

Question

Quizplus · Accepted Answer

The optimal level of working capital investment is the level that is expected to maximize shareholder wealth. This is because the management's primary goal is to increase the value of the firm to its shareholders, and working capital management involves balancing liquidity and profitability to achieve this goal.

The Optimal Level of Working Capital Investment Is the Level