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With Respect to Debt Financing, Which of the Following Statements

Question 58

Multiple Choice

With respect to debt financing, which of the following statements is most accurate from the perspective of the firm seeking funds?


A) Short- term loans are more risky and usually more expensive than equity.
B) Short- term loans are less risky and usually less expensive than equity.
C) Short- term loans are more risky and usually more expensive than long- term debt.
D) Short- term loans are more risky and usually less expensive than long- term loans.

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