Firms with higher growth opportunities

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Reference no: EM131025774

Firms with higher growth opportunities (and some research suggest that firms in high growth areas - clusters) tend to maintain greater financial slack. Explain?

Basically the financial slack or flexibility will have an impact on/or it's defined by: 1) the level of cash, 2) level of debt (leverage) and 3) debt term to maturity.

Pointers: which industries will have higher growth, will those industries have more or less debt (or equity including internal funding), cash and will debt be more ST or LT?.....why?

Reference no: EM131025774

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