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Aa Aa E, 10. Managing maturity structure of debt Along with decisions about optimal debt structure, firms need to decide on the kind of maturities

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Aa Aa E, 10. Managing maturity structure of debt Along with decisions about optimal debt structure, firms need to decide on the kind of maturities the debt in their capital structure should have. There are several factors that affect the choice of maturity structure. Based on your understanding of the factors associated with the choice of maturity structure, complete the following sentences Suppose a company took a 2-year debt that could be rolled for a 10-year asset maturity. It would have to pay a higher rate if interest rates If a firm is not performing well financially, then its managers will be less likely to issue long-term debt, because this would have a impact on the company's bond rating. Secured debt is costly than unsecured debt

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