Given a company’s capital requirements, determine the working capital needs of the company and evaluate how the working capital should be financed.
Do some research on two firms in your industry or an industry in which you are interested. Can you get an idea of their working capital management policies from publicly available information? How do the two companies differ in their apparent working capital management policies? Which policy do you think is better and why?
Consider the company you work for or a company in which you are interested. Also, do some research to find some current cost estimates for various means of financing working capital. What would be your recommendation to the company for financing its working capital needs? If the information is publicly available, or if you have access to it AND have permission to discuss it, how does your recommendation compare what the firm is actually doing?
