Which of the following statements concerning liquidity and debt is true? A) The greater use of...
Which of the following statements concerning liquidity and debt is true?
A) The greater use of short-term debt, the lower the risk of illiquidity.
B) Long-term debt is generally less costly than short-term debt.
C) A firm can reduce its risk for illiquidity by shifting from short-term debt to long-term debt.
D) The risk of illiquidity does not depend on the mix of short-term versus long-term debt.
Homework Answers
The correct answer is:-
C) A firm can reduce its risk for illiquidity by shifting from short-term debt to long-term debt.
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Which of the following statements concerning liquidity and debt is true? A) The greater use of...
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