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Business, 23.04.2020 23:00 leslya1455213

What are the current asset financing strategies that firms adopt? Suppose a firm wants to take advantage of an upward-sloping yield curve. If the firm believes that interest rates will stay constant and it wants to use the current yield curve to bolster profits, which approach should the firm follow?

a. Maturity matching approach
b. Conservative approach
c. Aggressive approach

Suppose a firm occasionally faces demand for short-term credit but usually has an excess of short-term capital to finance current assets. Which approach is the firm following?

a. Conservative approach
b. Aggressive approach
c. Maturity matching approach

Which usually costs less—short-term or long-term debt?

a. Long-term debt
b. Short-term debt

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