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Working Capital
Working capital is measured as the difference among organization present assets and its current liabilities. Therefore, it is interpreted by some as a measure of a firm's liquidity or its ability to pay its bills on a short-term basis. However, excess investment in working capital can be costly for a firm as the rate of return on an organization working capital is likely to be lower than alternative long-term investment project returns. Therefore, the maintenance of excessively high working capital builds too much liquidity and hence lowers overall returns.
Why does most interbank currency trading worldwide involve the U.S. dollar? Answer: Trading in currencies worldwide is in opposition to a common currency which has international
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Specific Cost of Capital When the Cost of every source of capital is individually calculated, it is known as Specific Cost of Capital example Cost of equity, cost of debt, etc
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