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What is the primary advantage of a firm that is able to issuecommercial paper to

ID: 2661859 • Letter: W

Question

What is the primary advantage of a firm that is able to issuecommercial paper to finance its short-term assets?
a. Commercial paper provides greater flexibility in terms ofrepayment. b. Interest rates on commercial paper are generally lower thanrates on bank loans. c. Commercial paper does not need to be repaid. d. All of the above. What is the primary advantage of a firm that is able to issuecommercial paper to finance its short-term assets?
a. Commercial paper provides greater flexibility in terms ofrepayment. b. Interest rates on commercial paper are generally lower thanrates on bank loans. c. Commercial paper does not need to be repaid. d. All of the above.

Explanation / Answer

Answer is (d) All of the above.