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 long$-$term bank loans.

The railroad went bankrupt partially because it could not roll over its short$-$term debt due during the

$1970$ 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.