Which ONE of the following statements about aggressive funding strategy is true?
A) All working capital and a portion of fixed assets are funded with short-term debt.
B) This strategy lowers the cost under some interest rate scenarios.
C) It forces the company to continually refinance the funding of the long-term assets in a changing interest rate environment.
D) All of the above.

Question

Quizplus · Accepted Answer

An aggressive funding strategy involves using short-term debt to finance not only working capital but also a portion of fixed assets, which can lower costs in certain interest rate scenarios and requires frequent refinancing in a changing interest rate environment.

Which ONE of the Following Statements About Aggressive Funding Strategy