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Author Question: Which of the following statements concerning liquidity and debt is true? A) Long-term debt is ... (Read 111 times)

javeds

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

Question 2

Other things equal, higher net profit margins mean higher discretionary financing needed.
 
  Indicate whether the statement is true or false


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Carliemb17

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javeds

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Reply 2 on: Jul 10, 2018
YES! Correct, THANKS for helping me on my review


T4T

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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