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The Penn Central Railroad offers a dramatic case for paying fees for future flexibility. Which of the following is not true? It financed a large
The Penn Central Railroad offers a dramatic case for paying fees for future flexibility. Which of the
following is not true?
It financed a large portion of its operations with longterm bank loans.
The railroad went bankrupt partially because it could not roll over its shortterm debt due during the
recession.
The railroad might have survived the recession, had it financed its operations with bonds instead of
commercial paper.
The business should have at least two years between maturities when financing with bonds.
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