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Which of the following concerning short-term financing methods is NOT CORRECT? Short-term bank loans typically do not require assets as collateral. Firms generally have little
Which of the following concerning short-term financing methods is NOT CORRECT? Short-term bank loans typically do not require assets as collateral. Firms generally have little control over the level of accruals. Commercial papers typicall have maturities between nine months to one year. Commpercial papers typically carry substantilly lower interest rates than prime rates. Accruals and accounts payables do not carry explicit interest charges. Which of the following will NOT increase the value of a real (call) option? A decrease in the cost of obtaining the real option An increase in the risk-free rate An increase in the volatility of the underlying source of risk. Shortening the time in which a real option must be exercised. A decrease in the probability that a competitor will enter the market of the project in
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