Asked by Carlos Paredes Monreal on Jun 12, 2024
Verified
One of the primary benefits of aggregation is gaining an understanding of the:
A) Interactions of the net working capital.
B) Total investment needs of the firm.
C) Trade-offs between debt and equity.
D) Trade-offs between the dividend policy and the plowback ratio.
E) Total asset turnover ratio.
Aggregation
The process of combining multiple units or factors into a single group or total.
Net Working Capital
A financial metric indicating how well a company can fulfill its immediate financial liabilities, achieved by subtracting current liabilities from its current assets.
- Comprehend the critical aspects of financial planning, including the planning horizon and aggregation.
Verified Answer
KK
Karrlana KinderJun 18, 2024
Final Answer :
B
Explanation :
Aggregation helps in understanding the overall investment needs of a firm by combining and analyzing various financial aspects and requirements.
Learning Objectives
- Comprehend the critical aspects of financial planning, including the planning horizon and aggregation.