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Which of the following statements is CORRECT? Statement 1. The optimal financial policy of a corporation should involve a mix of debt and equity, and
Which of the following statements is CORRECT? Statement 1. The optimal financial policy of a corporation should involve a mix of debt and equity, and the debt portion must be a mix of short-term and long-term det Statement 2: Reinvestment risk refers to the risk that interest rates will fall in long-term investment is reinvested. Statement 3. Before adjusting interest rates, the BSP must consider macroeconomic factors first Statement 4. A treasury bond generally has a higher interest rate than a corporate bond because the government can and should be able to pay Only 1 Statement is correct 2 Statements are correct 3 Statements are correct All Statements are correct None of the Statements is correct
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