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What is the most critical reason why increases in long-term permanent assets should be financed with long-term debt? Multiple Choice Short-term debt may not be

What is the most critical reason why increases in long-term permanent assets should be financed with long-term debt?

Multiple Choice

  • Short-term debt may not be renewable at maturity

  • Short-term interest rates are higher than long-term rates

  • Long-term interest rates fluctuate more than short-term rates

  • None of the answers are correct.

  • Long-term interest rates can be accurately forecast but short-term rates cannot

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