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Commerce · Q402

Business Finance

Graduate and Post Graduate · Commerce · question 402

Q402

Which of the following options illustrates the use of a hedging approach to financing assets?

A.
Temporary current assets financed with long-term liabilities
B.
Permanent working capital financed with longterm liabilities
Answer
C.
Short-term assets financed with equity
D.
All assets financed with a mixture of 50% equity and 50% long-term debt

Answer: Option B

Solution

Answer: Option B
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