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Which following statement is correct? 1.Firms should generally finance all of their assets with long-term debt. 2.Firms that follow restrictive financial policies can generally avoid
Which following statement is correct?
1.Firms should generally finance all of their assets with long-term debt.
2.Firms that follow restrictive financial policies can generally avoid short-term debt financing
3.Long-term interest rates tend to be more volatile than short-term rates
4.A firm is less apt to face financial distress if it adopts a flexible financial policy rather than a restrictive policy
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