Q348
How can a firm provide a margin of safety if it cannot borrow on short notice to meet its needs?
A.
Maintain a low level of current assets (especially cash and marketable securities)
B.
Shorten the maturity schedule of financing
C.
Increase the level of fixed assets (especially plant and equipment)
D.
Lengthen the maturity schedule of financing
AnswerAnswer: Option D
Solution
Answer: Option D
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