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Commerce · Q109

Business Finance

Graduate and Post Graduate · Commerce · question 109

Q109

Which of the following approaches would be consistent with a hedging (maturity matching) approach to financing working capital?

A.
Financing short-term needs with short-term funds
Answer
B.
Financing short-term needs with long-term debt
C.
Financing seasonal needs with long-term funds
D.
Financing some long-term needs with short-term funds

Answer: Option A

Solution

Answer: Option A
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