
With a compromise financial policy companies will:
A) borrow only long-term funds and refuse any loans that require compensating balances.
B) borrow short-term funds and also invest in marketable securities.
C) finance all of their assets with various short-term loans.
D) finance their seasonal asset peaks with short-term debt and the remainder of their assets with equity.
E) finance half of their fixed assets with long-term debt and half with short-term debt.
Correct Answer:
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