All other things being equal, a policy of financing its assets with a relatively ____ proportion of short-term debt will tend to ____ the variability (or risk) of the after-tax earnings of the firm.
A) large; decrease
B) small; increase
C) constant; lower
D) large; increase
Correct Answer:
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Q2: Lenders normally feel that the relative risk
Q3: Under a conservative approach to working capital
Q4: Which of the following factors does not
Q5: The relationship between the maturity of debt
Q6: Which of the following is equal to
Q7: Which of the accounts listed is not
Q8: The relationship among interest rates of debt
Q9: The rate of return on fixed assets
Q10: All other things being equal, a policy
Q11: Which of the following factors affect the
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