Short-term financing is riskier than long-term financing-10902
Short-term financing is riskier than long-term financing because:
This multiple choice question (MCQ) is related to the book/course vu fin622 Corporate Finance. It can also be found in vu fin622 Final Term - Quiz No.3.
Short-term financing is riskier than long-term financing because:
Short-term interest rates fluctuate; long-term rates do not.
Short-term debt must be refunded more frequently than long-term debt.
Short-term interest rates are usually higher than long-term interest rates.
The amount of money that can be raised by short-term borrowing is much less than the amount that can be raised long-term.