If the total long term financing of the firm is greater than the total financing needs for part of the year and less than the needs for some of the year due to seasonal fluctuations, the company will most likely:

Question

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When a company experiences seasonal fluctuations in financing needs, it will likely invest in marketable securities when it has excess funds and borrow short-term to cover periods when financing needs exceed available long-term financing. This approach allows the company to manage liquidity efficiently throughout the year.

If the Total Long Term Financing of the Firm Is