Problem:
Halka Company is a no-growth firm. Its sales fluctuate seasonally, causing total assets to vary from $395,000 to $410,000, but fixed assets remain constant at $260,000.
Required:
Question: If the firm follows a maturity matching (or moderate) working capital financing policy, what is the most likely total of long-term debt plus equity capital?
Note: Provide support for your underlying principle.