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A firm will usually increase the ratio of short-term debt to long-term debt when Multiple Choice short-term debt has a lower cost than long-term equity

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A firm will usually increase the ratio of short-term debt to long-term debt when Multiple Choice short-term debt has a lower cost than long-term equity the term structure is inverted and expected to shift down the term structure is upward sloping and expected to shift up, the firm is undertaking a large capital budgeting project

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