Firms can choose to deviate from maturity matching in their choice of debt by either adopting a flexible (safe and more

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Firms Can Choose To Deviate From Maturity Matching In Their Choice Of Debt By Either Adopting A Flexible Safe And More 1 (17 KiB) Viewed 33 times

Firms can choose to deviate from maturity matching in their choice of debt by either adopting a flexible (safe and more liquid Financial Policy or a Restrictive (more profit-oriented) Financial Policy. Select all that apply: the benent of long-term debt is lower roll-over risk firms with a Flexible Financial policy have a larger investment in current anots, including higher cnh and Inventory forces, as compared to firms with a Pestrictive Francia Poley firms with a Restrictive Financial policy prefer to use short-term debt for their external financing short-term debt generally carries lower yields/interest rates and is cheaper than long-term det firms with a Flexible Financial policy prefer to use long term debt for their external financing