Question
A firm will usually increase the ratio of short-term debt to long-term debt when short-term debt has a lower cost than long-term equity. future interest
A firm will usually increase the ratio of short-term debt to long-term debt when
short-term debt has a lower cost than long-term equity.
future interest rates are expected to increase.
long-term debt has a lower cost than long-term equity.
future interest rates are expected to decrease.
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Corporate Finance Reader
Authors: Robert W. Kolb
2nd Edition
1878975536, 978-1878975539
