Question 48 The financing of short-term assets with short-term debt is known as: Relative cash funding. Maturity hedging. Restrictive financing. Seasonal funding. Flexible financing. Question 49 ( A firm with a flexible short-term financial policy will: Maintain a low level of liquidity Have a small investment tin current assets Have a high level of net working capital Have more short-term debt and less long-term debt Maintain a low ratio of current assets to sales Question 50 A firm with a restrictive short-term financial policy will: A Have a high investment in current assets Have more short-erm debt and less long-term debt compared to a flexible policy Maintain a high ratio of current assets to sales Have a high level of net working capital Maintain a high level of liquidity
Question 48 The financing of short-term assets with short-term debt is known as: Relative cash funding. Maturity hedging. Restrictive financing. Seasonal funding. Flexible financing. Question 49 ( A firm with a flexible short-term financial policy will: Maintain a low level of liquidity Have a small investment tin current assets Have a high level of net working capital Have more short-term debt and less long-term debt Maintain a low ratio of current assets to sales Question 50 A firm with a restrictive short-term financial policy will: A Have a high investment in current assets Have more short-erm debt and less long-term debt compared to a flexible policy Maintain a high ratio of current assets to sales Have a high level of net working capital Maintain a high level of liquidity
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Give typing answer to all parts with explanation and conclusion
Transcribed Image Text:Question 48
The financing of short-term assets with short-term debt is known as:
Relative cash funding.
Maturity hedging.
Restrictive financing.
Seasonal funding.
Flexible financing.
Question 49
A firm with a flexible short-term financial policy will:
Maintain a low level of liquidity
Have a small investment tin current assets
Have a high level of net working capital
Have more short-term debt and less long-term debt
Maintain a low ratio of current assets to sales
Question 50
A firm with a restrictive short-term financial policy will:
Have a high investment in current assets
Have more short-erm debt and less long-term debt compared to a flexible policy
Maintain a high ratio of current assets to sales
Have a high level of net working capital
Maintain a high level of liquidity
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