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Which of the following is not an advantage to a corporation that uses the commercial paper market for short-term financing? A. This market provides more
Which of the following is not an advantage to a corporation that uses the commercial paper market for short-term financing? A. This market provides more funds at lower rates than other methods provide. B. The borrower avoids the expense of maintaining a compensating balance with a commercial bank. C. There are no restrictions as to the type of corporation that can enter into this market. D. This market provides a broad distribution for borrowing.All of the following statements in regard to working capital are correct except: A. financing permanent inventory buildup with long-term debt is an example of a maturity matching working capital policy B. the hedging approach to financing involves matching maturities of debt with specific financing needs. C. financing permanent inventory buildup with long-term debt is an example of an aggressive working capital policy. D. current liabilities are an important source of financing for many small firms
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