Which of the following is an advantage of utilizing short-term debt to finance the acquisition of

short-term assets?

A) It exposes the firm to less risk than if the firm were to use long-term debt.
B) Interest rates on short-term debt are usually lower than interest-rates on long-term debt.
C) It improves the firm's debt ratio.
D) It increases the firm's sustainable growth rate.


B

Business

You might also like to view...

Risk that can be eliminated by diversification is

A. unsystematic risk. B. systematic risk. C. default risk. D. interest-rate risk.

Business

Which of the following is NOT true of effective stories?

a. They can pass on understandings and dreams. b. They are often a bit dry. c. They can help bridge barriers. d. They can bring people psychologically closer.

Business

Most other nations' antitrust laws do not apply extraterritorially.

Answer the following statement true (T) or false (F)

Business

Which of the following is not considered a cost for administering the accounts receivable?

A) analyzing credit B) increased holdings C) sending out bills D) collecting past due accounts

Business