What is permanent working capital?
◦ the difference between the actual level of investment in short-term assets and the amount that a firm must keep invested in its short-term assets to support its continuing operations
◦ the amount that a firm keeps invested in its short-term assets to support its continuing operations which are financed by short-term debt
◦ the amount that a firm must keep invested in its short-term assets to support its continuing operations
◦ the amount that a firm keeps invested in its short-term assets to support its continuing operations which are financed by long-term debt