Three basic factors that determine which sources of short-term financing a firm uses are the effective cost of financing,the availability of credit,and the influence of the use of a particular credit source on the cost and availability of other sources of financing.
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Q12: Long-term debt is generally less costly than
Q13: Short-term debt has a greater risk of
Q14: The risk of illiquidity is increased if
Q15: Management of a firm's liquidity involves management
Q16: A firm increases the risks of insolvency
Q18: Although interest rates are generally higher on
Q19: Interest costs for short-term debt are generally
Q20: Working capital management involves managing a firm's
Q21: The hedging principle involves the use of
Q22: Which of the following is NOT true
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