(Solution) - You work in the finance department of HiTech Inc The -(2025 Original AI-Free Solution)

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You work in the finance department of HiTech Inc. The firm?s owner and CEO, Charlie Dollars, is very profit oriented. He understands that short-term interest rates are quite low at the moment, and has suggested that the firm finance all of its working capital needs with short-term loans. The CFO has asked you to prepare a memo for his signature outlining why this may not be the best strategy. In your memo, outline the working capital financing options available to most firms and discuss the trade-offs involved in using long-term versus short-term financing.