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Which of the following statements concerning liquidity and debt is TRUE? a. The greater the use of short-term debt, the lower the risk of illiquidity.
Which of the following statements concerning liquidity and debt is TRUE?
a. The greater the use of short-term debt, the lower the risk of illiquidity.
b. Long-term debt is generally less costlythan short-term debt.
c. A firm can reduce its risk for illiquidity by shifting from short-term debt to long-term debt.
d. The risk of illiquidity does not depend on the mix of short-term verses long-term.
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