1. Determining the appropriate level of working capital for a firm requires
A. Changing the capital structure and dividend policy for the firm.
B. Maintaining a high proportion of liquid assets to total assets in order to maximize the return on total investments.
C. Offsetting the profitability of current assets and current liabilities against the probability of technical insolvency.
D. Maintaining short-term debt at the lowest possible level because it is ordinarily more expensive than long term debt.