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Unformatted text preview: 4) Working Capital Management a) How to manage the short-term assets of your business i) Accounting – cash, inventory, short-term debt (commercial paper – usually overnight business), Account Payable, Account Receivable (1) Lehman also used too much short-term debt to leverage their long-term assets (debt term is usually 30 years) (2) Mismatch of maturity, important to know how to use debt 5) Examples a) Capital budgeting i) 2005: eBay pays $2.6 billion to buy Skype ii) 2009: eBay sells Skype stake for $1.9B iii) share repurchase and dividend payout (1) two ways you can return $ - cash management 07/09/2010 06:41:00 ← 07/09/2010 06:41:00 ←...
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