[Solved] -Under a conservative financing policy a firm would use long-term financing to finance some of the temporary current assets. What should the firm do when a "dip" in temporary current assets causes total assets to fall below the total longterm financing?

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Q.	-Under a conservative financing policy a firm would use long-term financing to finance some of the temporary current assets. What should the firm do when a "dip" in temporary current assets causes total assets to fall below the total longterm financing?
A.	use the excess funds to pay down long-term debt.
B.	invest the excess long-term financing in marketable securities.
C.	use the excess funds to repurchase common stock.
D.	purchase additional plant and equipment.
Answer» B. invest the excess long-term financing in marketable securities.

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