Which of the following statements is FALSE?
A)Financing part or all of the permanent working capital with short-term debt is known as an aggressive financing policy.
B)When the yield curve is downward sloping,the interest rate on short-term debt is lower than the rate on long-term debt.In that case,short-term debt may appear cheaper than long-term debt.
C)The value of short-term debt is less sensitive to the firm's credit quality than long-term debt;therefore,its value will be less affected by management's actions or information.
D)Permanent working capital is the amount that a firm must keep invested in its short-term assets to support its continuing operations.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements is FALSE?
A)Financing part or all of the permanent working capital with short-term debt is known as an aggressive financing policy.
B)When the yield curve is downward sloping,the interest rate on short-term debt is lower than the rate on long-term debt.In that case,short-term debt may appear cheaper than long-term debt.
C)The value of short-term debt is less sensitive to the firm's credit quality than long-term debt;therefore,its value will be less affected by management's actions or information.
D)Permanent working capital is the amount that a firm must keep invested in its short-term assets to support its continuing operations.

Which of the Following Statements Is FALSE