Which one of the following illustrates the use of a matching approach to financing? A Permanent working capital financed with long-term liabilities. B All assets financed with a 50 percent equity, 50 percent long-term debt mixture. C Fluctuating current assets financed with equity.
Which one of the following illustrates the use of a matching approach to financing? A Permanent working capital financed with long-term liabilities. B All assets financed with a 50 percent equity, 50 percent long-term debt mixture. C Fluctuating current assets financed with equity.
Chapter12: Corporate Valuation And Financial Planning
Section: Chapter Questions
Problem 1Q
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5. Which one of the following illustrates the use of a matching approach to financing?
| A |
Permanent |
|
| B |
All assets financed with a 50 percent equity, 50 percent long-term debt mixture. |
|
| C |
Fluctuating current assets financed with equity. |
|
| D |
Fluctuating current assets financed with long-term liabilities. |
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