Question
An investment banker argues that your firm should replace your long-term debt with short-term debt because short term interest rates are lower than the longterm
An investment banker argues that your firm should replace your long-term debt with short-term debt because short term interest rates are lower than the longterm rates. The lower rates will reduce your WACC and increase firm value. Is he correct?
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Business Forecasting
Authors: John E. Hanke, Dean Wichern
9th edition
132301202, 978-0132301206
