All other things equal, a policy of financing with a relatively ____ proportion of short-term debt will tend to result in ____ earnings.
A) large, lower
B) constant, higher
C) constant, lower
D) large, higher

Question

Quizplus · Accepted Answer

Financing with a larger proportion of short-term debt typically results in higher earnings due to lower interest rates compared to long-term debt, assuming interest rates remain stable.

All Other Things Equal, a Policy of Financing with a Relatively