In some countries the market for long-term corporate debt is limited, and firms turn to short-term bank
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In some countries the market for long-term corporate debt is limited, and firms turn to short-term bank loans to finance long-term investments in plant and machinery. When a short-term loan comes due, it is replaced by another one, so that the firm is always a short-term debtor. What are the advantages and disadvantages?
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One of the disadvantages of this sort of shortterm borrowing is the uncertaint...View the full answer
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John Kago
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Related Book For 
Principles of Corporate Finance
ISBN: 978-0072869460
7th edition
Authors: Richard A. Brealey, Stewart C. Myers
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