When the firm finances the seasonally adjusted average level of asset demand with long-term debt and equity, the firm is said to follow a
A) seasonal-dependent financing policy.
B) relaxed financing policy.
C) restricted financing policy.
D) compromise financing policy.

Question

Quizplus · Accepted Answer

A compromise financing policy involves financing the average level of asset demand with long-term debt and equity, balancing between aggressive and conservative approaches.

When the Firm Finances the Seasonally Adjusted Average Level of Asset