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The relative profitability of a firm that employs an aggressive working capital financing policy will improve if the yield curve changes from upward sloping to downward sloping. True or False?

Sagot :

The statement that the  relative profitability of a firm that employs an aggressive working capital financing policy will improve if the yield curve changes from upward sloping to downward sloping is false.

What is the relative profitability?

Relative profitability  as well as the relative growth  can be described as the differences between a firm's profitability  as well as the growth measures  of its industry.

It should be noted that the relative profitability of a firm that employs an aggressive working capital financing policy  may not experience any improvement in a case whereby the yield curve changes from upward sloping to downward sloping.

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