A firm will usually increase the ratio of short-term debt to long-term debt when
A) short-term debt has a lower cost than long-term equity.
B) future interest rates are expected to increase.
C) long-term debt has a lower cost than long-term equity.
D) future interest rates are expected to decrease.
Correct Answer:
Verified
Q83: Generally, more use is made of short-term
Q89: U.S. government securities are used to construct
Q91: The term structure of interest rates is
Q94: Some analysts believe that the term structure
Q95: The belief that investors require a higher
Q98: Financial managers can accurately predict future interest
Q101: When the term structure of interest rates
Q106: The theory of the term structure of
Q118: An inverted yield curve would suggest that
A)
Q119: A "normal" term structure of interest rates
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents