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The maturity matching approach calls for matching asset and liability maturities. Examples include all of these EXCEPT: A All fixed assets plus the permanent current
The maturity matching approach calls for matching asset and liability maturities. Examples include all of these EXCEPT: A All fixed assets plus the permanent current assets are financed with long-term capital, but temporary current assets are financed with short-term debt B Inventory expected to be sold in 60 days would be financed with a 60 -day bank loan C Accounts receivables expected within 45 days would be offered to a Factor at the regular Net 30. D A new building with an expected useful life of 30 -years, would be financed with a 30 -year mortgage bond E A machine expected to remain useful is 7 years, it would be financed with a 7 -year loan \begin{tabular}{|l|l|l|} \hline & Four comprehensive financing options that can help with larger orders, include: \\ \hline A Asset-based financing & E Trade i.e. Supplier financing \\ \hline B & Accounts Payable discounting & F Short term liability management \\ \hline C & Factoring - Selling Accounts Receivab & G Tax Accrual financing \\ \hline D & Carrying cost financing & H Purchase Order financing \\ \hline \end{tabular} Based on the following data: rRF=5.5%;rMrRF=6%;b=0.8;D1=$1.00;P0=$25.00;g=6%;rd= firm's bond yield =6.5%. What is this firm's cost of equity using the CAPM approach? If Congress dramatically increases the corporate tax rate, then the tax deductibility of interest would be greater the higher the tax rate. This should lead to an in the firm's use of debt in its capital structure
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