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Albrecht Inc

Question 35

Multiple Choice

Albrecht Inc.is a no-growth firm whose sales fluctuate seasonally, causing total assets to vary from $320,000 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?


A) $260,642
B) $274,360
C) $288,800
D) $304,000
E) $320,000

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