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lythong266 lythong266
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A year ago
Why do firms generally choose to finance temporary net operating working capital with short-term debt?


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Matching the maturities of assets and liabilities reduces risk.



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Short-term interest rates have traditionally been more stable than long-term interest rates.



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A firm that borrows heavily on a long-term basis is more apt to be unable to repay the debt than a firm that borrows short term.



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The yield curve has traditionally been downward sloping.

Textbook 
Financial Management: Theory and Practice

Financial Management: Theory and Practice


Edition: 4th
Authors:
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LoveameriahLoveameriah
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A year ago
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lythong266 Author
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This site is awesome
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Thank you, thank you, thank you!
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