A conservatively financed firm would use long-term financing for all fixed asset
ID: 2761380 • Letter: A
Question
A conservatively financed firm would use long-term financing for all fixed assets and short-term financing for all other assets. Finance a portion of permanent assets and short-term assets with short-term debt. use equity to finance fixed assets, use long-term debt to finance permanent assets, and use short-term debt to finance fluctuating current assets. use long-term financial for permanent current assets, fixed assets, and a portion of the short-term fluctuating assets, and use short-term financing for all other short-term assets.Explanation / Answer
A conservatively financed firm would: